Form 512-S And Form 512-Sa - Oklahoma Small Business Corporation Income Tax

Line by Line Instructions for Determining Oklahoma Net Distributable Income

Cost of Complying with Sulfur

Lines 1-21, Column B:

Part 2, Column B is to be used by S corporations

(Title 68 O.S. Section 2357.205)

Regulations:

deriving all of their income from within Oklahoma.

A qualified refinery may make an irrevocable election to

This column is also to be used by all S corpora-

allocate all or a portion of the cost of complying with

tions whose business, both within and without

sulfur regulations issued by the Environmental

Oklahoma, is oil and gas production, mining,

Protection Agency as a deduction allowable to its

farming, or rental. This should be completed using

owners. The allocation for each person is equal to the

the direct accounting method. S corporations

ratable share of the total amount allocated, determined

conducting business of a unitary nature do not

on the basis of the ownership interest of the person.

complete Column B.

The taxable income of the refinery shall not be reduced

by the reason of any amount allowed under this section.

Corporations incurring expenses to provide Okla-

homa child care services for children of their

If you are the Refinery -

employees should refer to the "Employers Provid-

To make the election, attach a schedule stating your

ing Child Care Programs for their Employees" in

corporate name and FEI number, a list of the costs of

the left column of this page.

complying with sulfur regulations some or all of which

are being allocated to your owners, and the portion of

Don’t Forget

such costs allocated to each owner. Including the

owner’s name and Federal identification number. You

to Sign

shall also provide each owner with written notice of the

your Return!

amount of the allocation. The notice must include your

corporate name and FEI number and the owner’s name

and FEI number.

Part 3

If you are the Owner -

If Federal and Oklahoma net distributable incomes are the same,

(Part 2, Column B, line 19, or Part 4, line 6)

you may complete line 18 of Part 3, then complete Part 5.

A copy of your Federal Form 1120-S and K-1

Deduct the portion of the cost of complying with sulfur

must be enclosed with your Oklahoma return.

regulations which have been allocated to you. Attach

An Oklahoma return must be filed.

the written notice of the allocation received from the

refinery.

Lines 1-18, Column A:

Part 3, Column A is to be used by all S corporations. List

Employers Providing Child Care Programs

figures as reported on your federal 1120-S, Sch. K.

for their Employees:

Lines 1-18, Column B:

(Part 2, Column B, line 5 or Part 4, line 6 as an addition)

Part 3, Column B is to be used by S corporations

Employers incurring expenses to provide Okla-

deriving all of their income from within Oklahoma.

homa child care services for children of their

This will be the same as in Column A, except for

employees may be allowed a credit. If allowed,

lines 4b and 4c.

the eligible expenses upon which the credit is

This column is also used by S corporations whose

based must be added back to arrive at Oklahoma

business within and without Oklahoma is oil and

net distributable income. See Form 511CR, number

gas production, mining, farming, or rental. Com-

12 for the credit. Enclose a schedule of eligible

plete this column on a direct accounting basis as

expenses and the computation of the credit. Title

follows:

68 O.S. Section 2357.26 and Rule 710:50-15-91.

Line 1 -

Income (loss) shall be allocated in accordance with

Part 2

the situs of such property. Overhead expense shall

be allocated on the basis of direct expense in

To compute Oklahoma net distributable income, All

Oklahoma to the total direct expense everywhere.

S corporations start with Part 2.

Use Page 2, Part 2 or enclose a schedule.

Lines 1-21, Column A:

Part 2, Column A must be completed by all S

Lines 2 and 3 -

corporations. List exact figures as reported on the

Income (loss) from real and tangible personal

front page of your Federal 1120-S.

property shall be allocated in accordance with the

situs of such property.

Form 512-S And Form 512-Sa - Oklahoma Small Business Corporation Income Tax - 2006 Page 6

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