OAR 150-317-1000: Definition of Commercial Activity

(1) “Commercial activity” means the fair market value of all amounts realized in the regular course of a taxpayer’s trade or business that meet the “transactional test” in OAR 150-314-0335(5). (2) “Amounts realized” means all items of value received in a trade or business, including but not limited to money, property received, debt forgiven and services rendered. (3) Commercial activity does not include amounts that meet the “functional test” in OAR 150-314-0335(6) unless the amount in question meets the definition of commercial activity pursuant to section (1) of this rule. (4) The definition of commercial activity is not based on or tied to the definition of gross income in IRC section 61. (5) Commercial activity is realized when a taxpayer realizes the amount in question pursuant to the method of accounting used by a taxpayer for federal income tax purposes. [Publications: Contact the Oregon Department of Revenue for information about how to obtain a copy of the publication referred to or incorporated by reference in this rule pursuant to ORS 183.360(2) and ORS 183.355(1)(b).]