Oklahoma Corporation Income Tax Forms And Instructions Booklet

Line by Line Instructions

General Instructions for Determining Oklahoma Taxable Income, continued

Cost of complying with Sulfur Regulations:

Oklahoma Capital Gain Deduction - (continued)

(68 OS Sec. 2357.205)

3) Be earned on the sale of real property, tangible

A qualified refinery may make an irrevocable election

personal property or intangible personal property

to allocate all or a portion of the cost of complying with

located within Oklahoma as part of the sale

sulfur regulations issued by the Environmental Protection

of all or substantially all of the assets on an

Agency as a deduction allowable to its owners. The

Oklahoma company, limited liability company,

allocation for each person is equal to the ratable share

or partnership where such property has been

of the total amount allocated, determined on the basis of

directly or indirectly owned by such entity or

the ownership interest of the person. The taxable income

owned by the owners of such entity, and used

of the refinery shall not be reduced by the reason of any

in or derived from such entity for a period of at

amount allowed under this section.

least three uninterrupted years prior to the date

of the sale.

If you are the Refinery -

Enclose Form 561-C and a copy of your Federal

To make the election, attach a schedule stating your

Schedule D and Form 8949.

corporate name and Federal Employer Identification

Number, a list of the costs of complying with sulfur

Agricultural Commodity Processing

regulations some or all of which are being allocated to

Facility Exclusion:

your owners, and the portion of such costs allocated to

(Schedule A, Line 26, column B or Schedule B, Line 6)

each owner, including the owner’s name and federal

Owners of agricultural commodity processing facilities

identification number. You shall also provide each owner

may exclude 15% of their investment costs in a new

with written notice of the amount of the allocation. The

or expanded agricultural commodity processing facil-

notice must include your corporate name and Federal

ity located within Oklahoma. Agricultural commodity

Employer Identification Number and the owner’s name

processing facility means building, structures, fixtures

and federal identification number.

and improvements used or operated primarily for the

processing or production of agricultural commodities to

If you are the Owner -

marketable products. The investment is deemed made

(Schedule A, Line 26, column B or Schedule B, Line 6)

when the property is placed in service.

Deduct the portion of the cost of complying with sulfur

regulations which have been allocated to you. Attach the

Under no circumstances shall this exclusion lower your

written notice of the allocation

taxable income below zero. In the event the exclusion

received from the refinery.

does exceed taxable income, any unused portion may

be carried over for a period not to exceed six years.

Oklahoma Capital Gain Deduction:

A schedule must be enclosed showing the type of

(Schedule A, Line 26, column B or Schedule B, Line 6)

investment(s), the cost of the investment, and the date

Corporations can deduct qualifying gains receiving

placed in service.

capital treatment which are included in federal taxable

income. “Qualifying gains receiving capital

Captive Real Estate Investment Trusts:

(Sched-

treatment” means the amount of the net capital gains, as

ule A, Line 10, column B or Schedule B, Line 2)

defined under IRC Section 1222(11). The qualifying gain

A captive real estate investment trust, which is subject to

must:

Federal income tax, is required to add-back the divi-

dends-paid deduction otherwise allowed by federal law

1) Be earned on real or tangible personal property

in computing net income. 68 OS Sec. 2358.

located within Oklahoma that you have owned,

either directly or indirectly, for at least five

OkTAP: More than your Filing Solution

uninterrupted years prior to the date of the sale;

2) Be earned on the sale of stock or ownership

Access to file, pay,

interest in an Oklahoma headquartered

update, interact…all on

company, limited liability company, or

your time, anytime!

partnership where such stock or ownership

interest has been owned, either directly or

See page 13 for more information.

indirectly, by you for at least three uninterrupted

years prior to the date of the sale; or

Oklahoma Corporation Income Tax Forms And Instructions Booklet - 2014 Page 5

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