Fillable Form 561nr - Oklahoma Capital Gain Deduction

2011 Form 561NR - Page 2

Oklahoma Capital Gain Deduction

for Part-Year and Nonresidents Filing Form 511NR

68 Oklahoma Statute (OS) Section 2358 and Rule 710:50-15-48

Worksheet -

(Enclose with Form 561NR)

Name(s) as Shown on Return

Social Security Number

Form 561NR Worksheet for (check one): Line 3

Line 5

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 defined under Internal Revenue

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

the sale of the real or tangible personal property located within Oklahoma that has been owned for at least five uninter-

rupted years prior to the date of the transaction that gave rise to the capital gain;

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

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 qualified 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 five years and the pass-through entity has held the asset for not less than the applicable two or five 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 five. 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.

Specific Instructions

Line 1:

List qualifying Oklahoma capital gains and losses from Federal Form(s) 8949, Part II. Do not include gains and losses reported

on Form 561NR lines 2 through 5. In Column A, line A1 enter the description of the property as shown in Federal Form 8949,

Column a. On line A2 enter either the Oklahoma location/address of the real or tangible personal property sold or the Federal

Form 561nr - Oklahoma Capital Gain Deduction - 2011 Page 2

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