You sold a rental in Portland, exchanged into something in Arizona, and moved on. Oregon did not. There is a form you owe them every year until you sell that replacement property — and if the rental was inside Portland city limits, there is a second one.
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Form OR-24 is the Oregon Department of Revenue’s like-kind exchange information return. Its official name is Oregon Like-Kind Exchanges/Involuntary Conversions, form number 150-101-734.
It exists for one narrow situation: you exchanged Oregon business or investment property for property located outside Oregon, and you deferred the gain under IRC Section 1031 or Section 1033.
If your replacement property is also in Oregon, this form does not apply to you. The Department’s own instructions say so directly: don’t use this form when exchanging property in Oregon for other property in Oregon. The filing obligation is triggered by the equity leaving the state, not by the exchange itself.
The form asks for the Oregon property you gave up and the property you received, the dates of both transfers, and three figures that come straight off your federal Form 8824 — your realized gain, your recognized gain, and the deferred gain. It is an information return, not a tax bill. Nothing is due when you file it.
What makes it unusual is the schedule. You file it in the year of the exchange and then every year after that, until you dispose of the replacement property. If you made more than one exchange, each one gets its own form.
Oregon is one of a small number of states that operate a clawback on like-kind exchanges. California is the best known. Oregon, Massachusetts and Montana do the same thing.
The mechanic is this. You defer the gain on Oregon property and move the equity out of state. Years later you sell the replacement property in a taxable transaction. At that point ORS 316.738 modifies your Oregon taxable income to add the deferred gain back — the gain that originated on Oregon property, which Oregon never got to tax.
Oregon’s top individual rate reaches 9.9%. On a large deferred gain that is real money arriving years after you stopped thinking of yourself as an Oregon taxpayer.
Form OR-24 is how the state keeps track of you in the meantime. Each annual filing is Oregon writing down that the gain still exists and still belongs to them when it is finally recognized.
This is the piece that almost never comes up, and it catches people who thought they had handled the Oregon side properly.
The City of Portland, Multnomah County and Metro administer their own business taxes, and they adopt the federal and Oregon treatment of like-kind exchanges — meaning they allow the same deferral. Their administrative rule then does what Oregon does, one layer down.
So a Portland landlord exchanging out of state can end up with three layers: the federal deferral, the annual Oregon Form OR-24, and an annual Portland/Multnomah/Metro return. Most people handle the first, some handle the second, and the third is usually discovered years later.
An information return with no tax due is easy to skip. The consequence is not a late-filing fee — it is that the state stops waiting for your numbers and starts using its own.
When a clawback state has no filing on record and eventually finds the disposition, it estimates the deferred gain and assesses tax, interest and penalties on that estimate. The burden then sits with you to prove a different number, using records from a transaction that may be ten years old.
The practical protection is unglamorous: file the form every year, keep the closing statements from both sides of the exchange, and keep the federal Form 8824 that the OR-24 figures come from. That is the whole defence.
Separately from the annual filing, Oregon can require withholding at closing on certain real property conveyances. The exemption is claimed on Form OR-18-WC, and the timing is tight — it is filed before the closing, not after.
This is a closing-agent conversation, not an afterthought. If the paperwork is not in front of the escrow officer in time, money comes out of your proceeds and you are recovering it on a return rather than keeping it in the exchange.
The California equivalent is Form 593, and the pattern is the same: an exemption you have to claim at the right moment rather than one that applies automatically. If you are exchanging out of California instead, the annual filing there is Form 3840.
Three steps, in order.
A 1031 exchange defers tax. It does not forgive it. What the Oregon and Portland filings do is make sure that when the deferred gain is finally recognized, the amount is the one from your records rather than the one from theirs.
No. Form OR-24 is only for Oregon business or investment property exchanged for property located outside Oregon. The Department of Revenue’s instructions say plainly not to use the form when exchanging Oregon property for other Oregon property.
Every year until you dispose of the replacement property. You file in the tax year you transferred the Oregon property, and annually thereafter until disposition — at which point the deferred gain is reported to Oregon.
The obligation does not go away. Oregon’s instructions provide that if you don’t have an Oregon filing requirement, you may submit the form on its own. Leaving Oregon does not end it.
To whichever Oregon return you file — the individual return, a corporation return (Form OR-20, OR-20-INC or OR-20-S), a partnership return (Form OR-65), or a fiduciary return (Form OR-41) — with the “Form OR-24 is included” box checked. One form per exchange.
The filing follows the entity that reports the exchange. A single-member LLC generally reports on the owner’s return; a partnership files Form OR-65. The Portland, Multnomah County and Metro requirement applies to the taxfiler in that jurisdiction regardless. Worth confirming with your CPA which return the form rides on before the first filing, because the pattern then repeats for years.
Forms, rates and administrative rules change. Confirm current requirements with the Oregon Department of Revenue, the relevant local jurisdiction, and your own tax professional before filing anything.