Oklahoma Nonresident Fiduciary Income Tax Forms And Instructions

General Filing Information

Net Operating Loss...

Depletion...

Effective tax year 2001, net operating losses may be

Oklahoma depletion on oil and gas well production, at

carried forward and back in accordance with Section

the option of the taxpayer, may be computed at 22% of

172 of the Internal Revenue Code. For tax years 1996-

gross income derived from each Oklahoma property

2000, net operating losses may be carried forward only

during the taxable year. Any depletion deduction

for a period of time not to exceed 15 years. The net

allowable is the amount so computed minus Federal

operating loss which is not actually utilized shall not

depletion claimed. If Oklahoma options are exercised

reduce the carryover. Title 68 O.S. Section 2358 (A) (3).

the Federal depletion not used due to 65% limit may not

be carried over. A complete depletion schedule by

An election may be made to forego the carryback

property must be furnished.

period. A written statement of the election must be part

of the original timely filed Oklahoma loss-year return.

Note: Major oil companies, as defined in Title 52 O.S.

However, if you filed your return on time without making

Section 288.2, when computing Oklahoma depletion

the election, you may still make the election on an

shall be limited to 50% of the net income (computed

amended return filed within 6 months of the due date of

without the allowance for depletion) from each property.

the original return (excluding extensions). Enclose the

election with the amended return. Once made, the

Lease bonus received is considered income subject to

election is irrevocable.

depletion. If depletion is claimed on a lease bonus and

no income is received as a result of nonproducing

Oklahoma net operating losses shall be separately

properties, upon expiration of the lease, such depletion

determined by reference to Section 172 of the Internal

must be restored, on Form 513NR, line 11, in both

Revenue Code, 26 U.S.C. as modified by the Oklahoma

columns, in the year the lease expires.

Tax Act.

First Year Bonus Depreciation...

Extensions...

30% Bonus First Year Depreciation...

A valid extension of time in which to file your Federal

Federal taxable income shall be increased by 80% of

return automatically extends the due date of your

any amount of bonus depreciation received under the

Oklahoma return if no Oklahoma liability is owed. A copy

Federal Job Creation and Worker Assistance Act of

of the Federal extension must be enclosed with your

2002. Any amount added back can be reclaimed in a

Oklahoma return. If your Federal return is not extended

later year. In the first taxable year beginning after the

or an Oklahoma liability is owed, an extension of time to

bonus depreciation was added back and for the next

file your Oklahoma return can be granted on Form 504.

three taxable years, subtract 25% of the amount added

At least 90% of the tax liability must be paid by the

back.

original due date for the return to avoid penalty charges

for late payment. Interest will be charged from the

The amount of bonus depreciation added back for

original due date of the return.

Oklahoma purposes shall be reclaimed in later taxable

years in the following manner:

Of the total amount of bonus depreciation

included in income in each column, 25% shall

be deducted in the first taxable year begin-

ning or deemed to begin the year after the

bonus depreciation was added back and 25% in

each of the next three following taxable years.

Enter the 25% of Form 513NR, in the applicable

Federal Amount and/or Oklahoma Amount

column(s) on line 16 “Income Distribution

Deduction.”

50% Bonus First Year Depreciation...

No adjustment is required for those fiduciaries claiming

the 50% bonus depreciation received under the Jobs

and Growth Tax Relief Reconciliation Act of 2003.

(continued on page 5)

Oklahoma Nonresident Fiduciary Income Tax Forms And Instructions - 2006 Page 4

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