Income of nonresident estate or trust

For purposes of ORS 316.302 to 316.317: (1) Items of income, gain, loss and deduction mean those derived from or connected with sources in this state. (2) Items of income, gain, loss and deduction entering into the definition of federal distributable net income include such items from another estate or trust of which the first estate or trust is a beneficiary. (3) The source of items of income, gain, loss or deduction shall be determined under regulations prescribed by the Department of Revenue in accordance with the general rules in ORS 316.127 as if the estate or trust were a nonresident individual. (4) The income of a nonresident estate or trust consists of: (a) Its share of items of income, gain, loss and deduction that enter into the federal definition of distributable net income; (b) Increased or reduced by the amount of any items of income, gain, loss or deduction that are recognized for federal income tax purposes but excluded from the federal definition of distributable net income of the estate or trust; (c) Less the amount of the deduction for its federal exemption.