Vanderweele v. Department of Revenue

CARL N. BYERS, Judge.

This matter is before the court on defendant’s Motion for Summary Judgment. The parties have stipulated the facts and submitted the matter on written memoranda.

Plaintiff and his brother James, both nonresidents of Oregon, were partners in an Oregon partnership known as Butternut Creek Nursery. The partnership suffered net operating losses. When the brothers filed their 1988 Oregon individual income tax returns, each claimed a net operating loss deduction. Defendant disallowed the deduction. This action was based on OAR 150-316.014(4)(b), which read:

“A nonresident shall be…