Tax Time! Interview with an Expert, Oregon vs. Washington

By
Home Stager with StageUsNow, LLC, dba; Presentations Home Staging

 

 

I asked Jeanie Pitner, our lifesaver in the tax world what the difference was between buying a home in Oregon vs. Washington after being asked the question ourselves so many times.  Although we are not Real Estate Agents or qualified to answer, I thought I would pass this along for those interested from our tax expert, Jeanie Pitner. The QA follows;

 

Question: What is the difference between owning a home in Oregon VS Washington?
By Jeanie M. Pitner EA, ATP, LTC (32007-C)

 

 

 

The difference is Oregon State Taxes, if you live and work only in Washington you will only file a Federal Tax return.  Because Oregon has no sales tax it has a State tax
instead which is derived from a tax payers adjusted gross income with adjustments.  In general, most all States have some type of property tax and Oregon and Washington
are no different.  If you live in Washington and work in Oregon you will still be required to file a Oregon Non Resident tax return based on your income that you
you earned while you were employed there. The big difference that should be considered is once a person retires and lives in Oregon.  In Oregon once you retire your
retirement is taxable and includable in your income.  If you have worked in Oregon and have Oregon retirement but live in Washington none of your retirement is
taxable to Oregon.
 

 

 

 

Question: I am a Washington resident - What is the difference between owning and operating a business in Oregon VS Washington?
By Jeanie M. Pitner EA, ATP, LTC (32007-C)

 

 

 

Both States require businesses to have a business license, however when you move your business to Oregon you will have the impact of additional Oregon
responsibilities and taxes. Following is small list comparing some of the additional responsibilities a business owner will face when doing business in Oregon: 

 


OREGON
1. If your main Corporation licensed in WA you will also need to perform the Foreign Corp Business License in Oregon
2. State of WA DOR for combined excise taxes due either monthly, quarterly or annual - However you will only pay tax on products sold or produced in the State of WA.
3.  Oregon Portland/Multnomah Annual Tax Return - Pay tax on total income
4. Oregon property taxes, similar to Washington property taxes - you may owe property taxes to both states of you have business property on both sides of the river
5.  You will File Federal and Oregon tax returns - Oregon tax calculated on total sales
6. You will pay Federal and Oregon payroll taxes if you have employees
7. You are responsible for filing 1099Misc for subcontractors you pay over $600.00

 

 

 

WASHINGTON
1. If you own a business in WA and do business in Oregon, you pay tax only on your income derived from Oregon which is calculated by percentage. 

 

2. One Corporate License, you may still perform the Foreign Corp Business License in Oregon
3. State of WA DOR, pay tax on products sold or produced in State of WA, Interstate sales are backed out.
4. Oregon Portland/Multnomah Tax Return may still be required - Pay tax on Oregon income only
5. Washington business property tax
6. You will File Federal and Oregon tax returns - Oregon tax calculated on sales only performed in Oregon
7. You will pay Federal and Washington payroll taxes if you have employees
8. You are responsible for filing form 1099Misc for subcontractor you pay over $600.00

 

For your Tax needs Jeanie can be reached:

 

Jeanie M Pitner BA ATP EA LTC

 

Taxes, Bookkeeping & Payroll LLC
360.989.7228 Fax 360.326.1830
8914 NE St Johns Road Vancouver WA 98665

 

 

Sheila Reynolds, ASP, IAHSP

 

Presentations Home Staging, LLC

 

www.StageUsNow.com

 

(360) 666-9461

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Comments (1)

Anonymous
Chris Seagle

Thank you crisp and detailed information posted Jeanie. I live in OR but was trying to decide whether to LLC in OR vs WA. I will probably do biz in both states but realistically more in Oregon.

Jan 06, 2017 12:13 PM
#1