Oregon Real Estate Withholding Tax is not required if:

• The consideration for the property conveyed is $100,000 or less;
• The transferor is an individual and a resident of Oregon;
• The transferor is a C corporation that has a permanent place of business in Oregon;
• The transferor is a pass-through entity not affected by this law (see question 6);
• The transferor intends to defer tax on the gain under Internal Revenue Code (IRC) §1031 or §1033 and, at the time of closing, the property is eligible for such treatment;
• The transferor has received advice from a tax professional that there is no tax estimated to be due because the conveyance is:
  a.The sale of a principal residence and all of the gain qualifies for exclusion under IRC §121.
  b. A transfer to a corporation controlled by the transferor for purposes of IRC §351.
  c. A transfer pursuant to a tax-free reorganization under IRC §361.
  d. A transfer by a tax-exempt entity for purposes of IRC §501(a) and the transfer does not give rise to unrelated business taxable income under IRC §512.
  e. A transfer to a partnership in exchange for an interest in the partnership such that no gain or loss is recognized under IRC §721.
  f. Between spouses or is incident to divorce for purposes of IRC §1041.
  g. A transfer where the transferor is conveying the property subject to a mortgage, trust deed or land sale contract to a mortgagee, trust deed beneficiary, or land sale contract vendor as part of a foreclosure action, a non-judicial foreclosure, or forfeiture proceeding, or a transfer by a mortgagor, trust deed grantor, or land sales contract vendee in lieu of a foreclosure, with no additional consideration.
  h. A transfer that results in zero gain or a loss and there is expected to be no tax owed on the conveyance.
  i. Fully exempt from the recognition of gain under ORS chapter 316, 317, or 318 as explained to the department in writing at the time the transaction is completed (attach explanation to the Form WC).

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Ask TaxGuru Please refer to the legal disclaimer.

Hi, Please help!
I am from California and do not reside in Oregon. I purchased a home in Oregon in 2007 for $200,000. I will be selling it this year 2015 as a LOSS of $170,000.
Will I still be required to pay the real estate withholding tax ?


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