1. (1) The period for the assessment of any deficiency attributable to any part of the gain realized upon the sale or exchange of the taxpayer's principal residence shall not expire prior to three years from the date the department is notified by the taxpayer of:

   1. (a) The cost of purchasing the new residence which the taxpayer claims results in nonrecognition of any part of such gain; or
   2. (b) The taxpayer's intention not to purchase a new residence; or
   3. (c) A failure to purchase a new residence within the prescribed period. The department is deemed to have been notified when the taxpayer provides this information to the department.

2. (2) Individuals who have deferred gain on the sale of a principle residence under Internal Revenue Code (IRC) Section 1034, or who have excluded gain on the sale of a residence under IRC 121, are not required to file notice directly with the department if:

   1. (a) They have met any applicable reinvestment requirements; and
   2. (b) Notification of the reinvestment has been filed with the Internal Revenue Service. In this case, the department is deemed to have been notified on the date the Internal Revenue Service is notified.

Statutory/Other Authority

ORS 305.100

Statutes/Other Implemented

ORS 314.410

History

Renumbered from 150-314.410(6), REV 31-2016, f. 8-12-16, cert. ef. 9-1-16
Renumbered from 150-314.410(5), REV 8-2008, f. 8-29-08, cert. ef. 8-31-08
RD 5-1997, f. 12-12-97, cert. ef. 12-31-97