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

Line by Line Instructions for Determining Oklahoma Net Distributable Income

Part 4

Estimated Income Tax Options

Part 4 is to be used by S corporations conducting

Forms and paper checks are not your only option when

a business of unitary nature. A unitary business is

making estimated income tax payments. You may pay

one whose income is derived from the conduct in

directly from your checking account electronically or by

more than one state of a single business enter-

credit card through the Oklahoma Tax Commission website.

prise all the factors of which are essential to the

Log on to and visit the “Payment

realization of an ultimate gain derived from the

Options” link for more information.

enterprise as a whole, and not from its component

parts which are too closely connected and neces-

sary to each other to justify division or separate

Part 5

allocation.

All S corporations must complete Part 5.

Generally, the resulting amount is apportioned to

Oklahoma based on the 3-factor formula. The

If your business is either wholly Oklahoma or of an

basis of the apportionment is the average of three

allocable nature, complete Part 5 after you com-

factors consisting of property, payroll and sales.

plete Part 3. If your business is of a unitary na-

Each factor is a ratio of the total within Oklahoma

ture, complete Part 5 after you complete Part 4.

to the total everywhere. To the income apportioned

to Oklahoma there is to be added all income

Shareholder’s Pro Rata Share of Income

separately allocated to Oklahoma with the result

Enter the names, Social Security Numbers or

being Oklahoma taxable income. Title 68 O.S.

Federal Identification Numbers and addresses of

Section 2358.

the shareholders, and write in the applicable

column each shareholder's pro rata share of net

Line 1 - Enter net distributable income from Page

income, whether distributed or not.

2, Part 3, Column A, line 18.

Line 2 - Deductions relating to income which is

Notice:

separately allocable shall not be allowed as

The amount shown on Part 5 may not be the

apportionable and will be entered here.

amount to be entered on the shareholder’s Okla-

homa income tax return. This amount includes all

Line 3 - Income from U.S. obligations (see Part 3,

allowable S corporation income, losses and deduc-

line 4c instructions) and net income separately

tions; however, some of these items may be limited

allocated (oil and gas production, mining, farming,

on the Federal individual return. If these items are

or rentals and other Corporation income or loss)

allowed in full or in part on your Federal income

will be entered here. Gains or losses from sale of

tax return, they will be allowed to the same extent

intangible personal property which is directly

on your Oklahoma return.

allocated should also be entered here.

Corporations Please Note:

Line 4 - Total apportionable income.

Nonresident shareholders must enclose Form 512-

SA indicating that an income tax form will be filed

Line 5 - Apportionment Factor from Apportionment

with Oklahoma reporting their income or loss. This

Schedule.

agreement must be enclosed with the original S

Line 6 - Income separately allocated to Oklahoma

corporation income tax return, Form 512-S, for

should be entered here (interest income from state

each nonresident shareholder,otherwise the

obligations or political subdivisions, oil and gas

corporation shall be taxed on that part of the

production, mining, farming or rentals, etc.).

corporation's net income allocable to the shares of

stock owned by the nonresident shareholder.

Corporations incurring expenses to provide child

care services for children of their employees

should refer to the "Employers Providing Child

Once the agreement has been signed, it is irrevoc-

Care Programs for their Employees" on page 6.

able for this tax year. If a signed agreement is not

submitted with the original filed return, the tax on

Line 7 - Oklahoma net distributable income. Place

the corporation is binding. Shareholder’s social

this figure on Page 2, Part 3, Column B, line 18.

security number or Federal identification number

Then complete Part 5.

must be shown for the agreement to be valid.

Form 512-S And Form 512-Sa - Oklahoma Small Business Corporation Income Tax - 2006 Page 8

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