Capital gains and losses BUG in the state return?

Forum|Forum|4 years ago
March 13, 2022
3 replies
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After successfully entering my Oklahoma Return TurboTax using "Step-by-Step" it makes a last check but finds a "problem" and displays form 561 for "Capital Gain Deduction For Residents Filing form 511". The display error is to the effect about having to enter Federal ID number or Oklahoma location of the company. BUT no-where in the Federal Return was indicated that the stocks I sold were companies located in Oklahoma (they are not) so obviously I am not asking for a tax break in the state return. The form says "To exclude a gain or loss, check the box in the * column" and I did but it still will not let you continue and insists to enter more information about those companies! It will not let you continue with the self-check. That's a bug, right?

Can you please fix so I can continue my taxes and file? Is there something I did wrong?

TurboTax Home & Biz Windows

Best answer by BillM223

The following is an answer that has worked for taxpayers in previous years. Try it and see if it works for you.

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You evidently have capital gains from sales outside of Oklahoma. The way to handle this in the Oklahoma is a bit confusing.

First, when you see the summary of Oklahoma Capital Gains and Losses, press Edit for each gain.

The next screen will read Oklahoma Capital Asset Location and Type for each sale. Check the box "This property does not qualify for exclusion". If you go to Form mode (if you are using the desktop software or have already paid for the Online product), you will see that the box in the far left column of form 561NR has been checked for that sale, indicating that you want to exclude a gain or loss (see form).

This is completely counter-intuitive, but it gets you the result that you want, because it reports your Oklahoma gain as zero.

Note form 561NR is for nonresidents - I don't know if you are filing as a nonresident or what.

Alternative, you can not check the box, but enter the federal ID number for the sale. Then, on the next screen, enter the Oklahoma gain as zero. This will achieve the same result - no gain reported in Oklahoma.

BillM223Answer

The following is an answer that has worked for taxpayers in previous years. Try it and see if it works for you.

***

You evidently have capital gains from sales outside of Oklahoma. The way to handle this in the Oklahoma is a bit confusing.

First, when you see the summary of Oklahoma Capital Gains and Losses, press Edit for each gain.

This is completely counter-intuitive, but it gets you the result that you want, because it reports your Oklahoma gain as zero.

Note form 561NR is for nonresidents - I don't know if you are filing as a nonresident or what.

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Alex86Author

Thanks for the quick response! I looks like work-around but it gets the job done.

Thank you very much!

woernder

I'm getting a really large dollar amount for capital gains on my return, but all I have sold were tax free bonds no stock. can find anything on my return that is incorrect, how do I get this number correct?

Mike9241

we can't see your returns so you will have o review every entry for those sales. you may have mistyped the sales price or the cost or even both for some securities. if these were OID muni bonds perhaps the cost does not reflect the OID amortization

BrittanyS

Have you tried the alternative steps provided by BillM223 for the online version of TurboTax? I have included them in this post for quick reference:

"Alternative, you can not check the box, but enter the federal ID number for the sale. Then, on the next screen, enter the Oklahoma gain as zero. This will achieve the same result - no gain reported in Oklahoma."

@Michael-McGarrett

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Michael-McGarrett

I tried to zero out all the gains, but couldn't find any "federal ID number" for each sale. Any clarification on that would be appreciated!

Also, TurboTax prompts for a categorization for each sale which is another field that causes errors but none of them seem to apply since I'm selling stock for companies outside of OK: