Oklahoma version is putting my long term capital gain on OK form 561 is this a bug I can't answer these questions. Wants an OK location?

Forum|Forum|5 years ago
February 17, 2021
3 replies
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The questions the program is asking is location of assets, Fed ID

BillM223

May I assume that you have sales of capital assets that were not in Oklahoma, but Oklahoma thinks that they are? The following answer assumes that you have sales from outside Oklahoma.

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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.

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CallMe

The solution described below by BillM223 did not work. I have gone round and round checking each "this does not qualify for an exemption" box, but each time I hit continue, it tells me I must enter the date of acquisition, which was not reported and I have no way of knowing. I have gone to the form and checked the box to the left of each entry, as he described, but nothing works. I imported all the 1099s and don't know why Turbo Tax populated an Oklahoma form 561 with non-Oklahoma related information. Please help!

joetf

I have the same issue. It appears to me to be a glitch in the Turbotax program. They take capital gains from the federal form and somehow assume they are related to Oklahoma. Go to the form 561 NR and delete it. The program will show an error but you still should be able to print your Oklahoma tax forms and mail them in. Probably a waste of money to get the Oklahoma State from Turbotax if you are a non-resident of Oklahoma.

Anonymous

The problem with OK Form 561 is still not fixed. I can't go forward.

CarissaM

When you complete the form in Turbo Tax, what is the issue you are currently having? The thread you are commenting on is an old thread, so we want to ensure we provide the most up to date information @3006712.

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Anonymous

It involves a question that is not clearly worded (bean-counter speak) about whether long-term capital gains occurred in Oklahoma. I went back, reread the section, and decided that it did not apply. When I made the change, the problem cleared up.

georgestn1

I am a non-resident of OK using turbotax download, filing for small amount of OK gas well royalities. While having already shown on federal many stock trade gains and a few losses, I'm aware that OK would want to know of nonstate capital gains, but there should be a clear method of showing where these gains were from and where not. For me to have to explain each trade in non-intuitive manner is very lame. Did I mention non-INTUITive? I was already annoyed that `one state free' doesn't really mean you get all of the features for that one state that you got for the federal free. With over 70% of the tax software mkt, it amazes me that they don't have a better state income tax process than this.