Fill Out a Valid Oklahoma 561Nr Form

Enclose Federal Form 1040, Schedule D

OKLAHOMA CAPITAL GAIN DEDUCTION

FOR PART-YEAR AND NONRESIDENTS FILING FORM 511NR

Title 68 O.S. Section 2358 and Rule 710:50-15-48

Worksheet - (Enclose with Form 561NR)

Complete a separate worksheet for each piece of property sold. Enclose a copy of the Federal Schedule K-1.

Name of pass-through entity: _____________________________________________________________________

Description of property sold: ______________________________________________________________________

Location of property: ____________________________________________________________________________

Date acquired: ______________________________________ Date sold: __________________________________

Date(s) you acquired ownership in the pass-through entity: ______________________________________________

General Information

Individual taxpayers can deduct qualifying gains receiving capital gain treatment which are included in Federal adjusted gross income. “Qualifying gains receiving capital treatment” means the amount of net capital gains, as deined under Internal Revenue

Code Section 1222(11). The qualifying gain must result from:

1.the sale of the real or tangible personal property located within Oklahoma that has been owned for at least ive uninter- rupted years prior to the date of the transaction that gave rise to the capital gain;

2.the sale of stock or an ownership interest in an Oklahoma company, limited liability company, or partnership where such stock or ownership interest has been owned for at least two uninterrupted years prior to the date of the transaction that gave rise to the capital gain; or

3.the sale of real property, tangible personal property or intangible personal property located within Oklahoma as part of the sale of all or substantially all of the assets of an Oklahoma company, limited liability company, or partnership or an Oklahoma proprietorship business enterprise where such property has been owned by such entity or business enter- prise or owned by the owners of such entity or business enterprise for a period of at least two uninterrupted years prior to the date of the transaction that gave rise to the capital gain.

An Oklahoma company, limited liability company, partnership or proprietorship business enterprise is an entity whose primary headquarters has been located in Oklahoma for at least three uninterrupted years prior to the date of sale.

A capital loss carryover from qualiied property reduces the current year gains from eligible property.

Pass-through entities...

Capital gain from qualifying property, as described above, held by a pass-through entity is eligible for the Oklahoma capital gain

deduction, provided the individual has been a member of the pass-through entity for an uninterrupted period of the applicable two or ive years and the pass-through entity has held the asset for not less than the applicable two or ive uninterrupted years

prior to the date of the transaction that created the capital gain. The type of asset sold, as shown in 1-3 above, determines whether the applicable number of uninterrupted years is two or ive. The pass-through entity must provide supplemental informa-

tion to the individual identifying the pass-through of qualifying capital gains.

Installment sales...

Qualifying gains included in an individual taxpayer’s Federal adjusted gross income for the current year which are derived from installment sales are eligible for exclusion, provided the appropriate holding periods are met.

Speciic Instructions

Line 1:

List qualifying Oklahoma capital gains and losses from Federal Schedule D, line 8 or from Federal Schedule D-1, line 8. In

Column A, line A1 enter the description of the property as shown in Federal Column A and on line A2 enter either the Oklahoma location of the real or tangible personal property sold or the Federal Identiication Number of the company, limited liability

Form 561NR - Page 3

OKLAHOMA CAPITAL GAIN DEDUCTION FOR

PART-YEAR AND NONRESIDENTS FILING FORM 511NR

Title 68 O.S. Section 2358 and Rule 710:50-15-48

Speciic Instructions - continued

company or partnership whose stock or ownership interest was sold. Complete Columns B through F using the information from the corresponding columns of the Federal Schedule D or D-1. In Column B, enter the date the property was acquired. If you en- tered “VARIOUS” or “INHERITED” on your Federal Schedule D, enter the date you actually acquired the property. Do not include gains and losses reported on Form 561NR lines 2 through 5.

In Column G enter the qualifying Oklahoma capital gains and losses reported in Column F which were sourced to Oklahoma on Form 511NR, line 7 “Oklahoma Amount” column.

Line 2:

Column F: If Federal Form 6252 was used to report the installment method for gain on the sale of eligible property on the Fed- eral return, compute the capital gain deduction using the current year’s taxable portion of the installment payment. Enclose Fed- eral Form 6252. Capital gain from an installment sale is eligible for the Oklahoma capital gain deduction provided the property was held for the appropriate holding period as of the date sold.

In Column G enter the capital gain from an installment sale of eligible property reported in Column F which was sourced to Okla- homa on Form 511NR, line 7 “Oklahoma Amount” column.

Line 3:

Column F: Enter the qualifying Oklahoma net capital gain from the Federal Form 4797 which was reported on Federal Schedule D. Enclose a copy of the Federal Form 4797. If reporting a gain/loss from a Federal Schedule K-1, complete the worksheet on page 2 of Form 561NR and enclose a copy of the Federal Schedule K-1.

In Column G enter the other qualifying Oklahoma capital gain from Federal Form 4797 reported in Column F which was sourced to Oklahoma on Form 511NR, line 7 “Oklahoma Amount” column.

Line 4:

Column F: Enter other qualifying Oklahoma capital gains reported on Federal Schedule D, line 11. Enclose the applicable Fed- eral form(s). If not shown on the Federal form, enclose a schedule identifying the type and location of the property sold, the date of the sale, and the date the property was acquired.

In Column G enter the other qualifying Oklahoma capital gains reported in Column F which were sourced to Oklahoma on Form 511NR, line 7 “Oklahoma Amount” column.

Line 5:

Column F: Enter qualifying Oklahoma net capital gain or loss from partnerships, S corporations, trusts and estates. Complete the worksheet on page 2 of Form 561NR and enclose a copy of the Federal Schedule K-1.

In Column G enter the qualifying Oklahoma net capital gain or loss from low-through entities reported in Column F which was sourced to Oklahoma on Form 511NR, line 7 “Oklahoma Amount” column.

Line 7:

Column F: Enter the total qualifying Oklahoma capital loss carryover from the prior year’s return.

In Column G enter the qualifying Oklahoma capital loss carryover reported in Column F which was sourced to Oklahoma on Form 511NR, line 7 “Oklahoma Amount” column.

Line 9:

Column F: The Oklahoma capital gain deduction, in the “Federal Amount” column, may not exceed the net capital gain included in Federal adjusted gross income. The term “net capital gain” means the excess of the net long-term capital gains for the taxable year over the net short-term capital loss for such year. If a capital loss, enter “0”.

Column G: The Oklahoma capital gain deduction, in the “Oklahoma Amount” column, may not exceed the portion of the net capital gain sourced to Oklahoma. This is the net capital gain from Form 511NR, line 7 “Oklahoma Amount” column. If there is no net capital gain, enter “0”.

Note: The net capital gain must be decreased for any capital gain or increased for any capital loss from the sale of state and municipal bonds exempt from Oklahoma income tax.

Line 10:

Column F: Compare lines 8 and 9. Enter the smaller amount here and on Form 511NR, Schedule 511NR-B, line 13 “Federal Amount” column.

Column G: Compare lines 8 and 9. Enter the smaller amount here and on Form 511NR, Schedule 511NR-B, line 13 “Oklahoma Amount” column.