Oklahoma Nonresident Fiduciary Income Tax Forms And Instructions

2006 Oklahoma Fiduciary Income Tax

What’s New in the 2006 Oklahoma Tax Booklet?

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You may be entitled to an Oklahoma Capital Gain Deduction. For information, see instructions on page 7.

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Note: Failure to complete Page 2, Part 2 may delay the processing of your return.

General Filing Information

How Nonresident Trusts

Grantor Trust...

and Estates Are Taxed...

A grantor trust will be treated the same on the Okla-

homa return as it is on the Federal. If the Federal return

The Oklahoma taxable income of a nonresident trust or

(Form 1041) is required to be filed, the Oklahoma return

estate shall be calculated as if all income were earned

is likewise required. Complete the heading on the Form

in Oklahoma, using Form 513NR. The Federal adjusted

513NR and enclose a schedule of income and deduc-

gross income (AGI) will be adjusted using the Oklahoma

tions, indicating the Oklahoma income. Include on the

adjustments allowed in Title 68 O.S. Section 2358, to

schedule the name, address, and social security num-

arrive at an Oklahoma AGI from all sources. The

ber of the grantor. Form 513NR, Part 2, may be used for

Oklahoma AGI from all sources is used to determine the

the grantor information.

Oklahoma taxable income. The tax is then calculated

using the Fiduciary Tax Table. At this point, the tax is

If income is reported to Oklahoma under one entity

prorated using the percentage of the AGI from Okla-

identification number and grantor files under a

homa sources divided by the AGI from all other sources.

different identification number, a Form 513NR must

This prorated tax is the Oklahoma tax liability.

be filed with a schedule showing name, address,

and social security number of the grantor.

Resident and Nonresident Defined...

“Resident estate” means the estate of a decedent who

Oklahoma Source Income...

at death was domiciled in this state. “Nonresident

The sources of income taxable to a nonresident are:

estate” is an estate other than a resident estate.

(1) Salaries, wages and commissions for work

performed in Oklahoma.

“Resident trust” is a trust created by a resident dece-

(2) Income from unincorporated business, profession,

dent’s will or by a resident during the administration, or

enterprise or other activity as the result of work

by a resident when the trust becomes irrevocable.

done, services rendered, or other business con-

“Nonresident trust” is a trust other than a resident trust.

ducted in Oklahoma.*

(See Title 68 O.S. Sections 2353-5 and 2353-6.)

(3) Distributive share of the Oklahoma part of partner-

ship income, gains, losses or deductions.*

Requirements for Filing...

(4) Distributive share from Sub-Chapter S Corporations

doing business in Oklahoma.*

Every nonresident estate or trust having Oklahoma

(5) Net rents and royalties from real and tangible

taxable income as provided in Title 68 O.S. Section

personal property located in Oklahoma.

2362 (Rents and Royalties, Business, Partnership and

(6) Gains from the sales or exchanges of real property

Sub-Chapter S Corporation income and sales of real

located in Oklahoma.

Oklahoma property) shall make a return for each

(7) Income received from all sources of wagering, games

taxable year stating the taxable income and the adjust-

of chance or any other winnings from sources within

ments provided in this act to arrive at Oklahoma taxable

this state. Proceeds which are not money shall be

income.

taken into account at their fair market value.

Simple Trust...

* This includes Limited Liability Companies (LLCs).

A simple trust requires all income to be distributed

currently, except amounts allocated to the corpus of the

(continued on page 3)

trust (capital gain). The Oklahoma taxable income for

simple trusts would be any capital gain(loss) minus pro

rata share of the Federal exemption, as all other income

and deductions are passed on to the beneficiaries.

Oklahoma Nonresident Fiduciary Income Tax Forms And Instructions - 2006 Page 2

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