Final answer:
Yes, Oregon does tax nonresidents on the gain of a like-kind exchange when exchanging Oregon property for out-of-state property, such as property in Washington.
Step-by-step explanation:
The statement that Oregon taxes a nonresident who realizes a gain on a like-kind exchange during the current tax year of Oregon property for Washington property is True. Like-kind exchanges, also known as 1031 exchanges, allow property owners to defer capital gains taxes when they exchange properties of like kind. However, Oregon law requires that if the exchanged property is in Oregon and the replacement property is outside of Oregon, the gain must be recognized by nonresidents for Oregon tax purposes. Therefore, if a nonresident conducts a like-kind exchange of Oregon property for property in another state, such as Washington, they are subject to Oregon state tax on the realized gain.