Oklahoma Capital Gain Deduction (for part-year and nonresidents filing Form 511NR)

Capital Gain Deduction (for part-year and nonresidents filing Form 511NR)
2023 Form 561-NR Oklahoma Capital Gain Deduction for Part Year and Nonresidents Filing Form 511NR
State of Oklahoma

for Part-Year and Nonresidents Filing Form 511-NR
(Qualifying Assets Held for the Applicable 2 or 5 Year Period)

561-NR

FORM

Oklahoma Capital Gain Deduction

Social Security Number

Name(s) as Shown on Return

1.	 List qualifying Oklahoma capital gains and losses, not included on lines 2 through 5 below.
A1. Description of Property:
A2.	 Oklahoma Location/Address
or Federal ID Number:

	

B. 	Date
C. Date Sold
D.	Proceeds E. 	 Cost or
	Acquired
	 or Disposed (Sales Price) Other Basis
minus
	(mm/dd/yy) 	(mm/dd/yy)
(See instructions)

Federal
Amount

Adjustments to F. 	 Gain or
(Loss)
Gain or Loss

Oklahoma
Amount
G. 	Gain or
(Loss)

A3. Type of property sold:
(see instructions)
A1. Description of Property:
A2.	 Oklahoma Location/Address
or Federal ID Number:

	

B. 	Date
C. Date Sold
D.	Proceeds E. 	 Cost or
	Acquired
	 or Disposed (Sales Price) Other Basis
minus
	(mm/dd/yy) 	(mm/dd/yy)
(See instructions)

Federal
Amount

Adjustments to F. 	 Gain or
(Loss)
Gain or Loss

Oklahoma
Amount
G. 	Gain or
(Loss)

A3. Type of property sold:
(see instructions)
A1. Description of Property:
A2.	 Oklahoma Location/Address
or Federal ID Number:

	

B. 	Date
C. Date Sold
D.	Proceeds E. 	 Cost or
	Acquired
	 or Disposed (Sales Price) Other Basis
minus
	(mm/dd/yy) 	(mm/dd/yy)
(See instructions)

Federal
Amount

Adjustments to F. 	 Gain or
(Loss)
Gain or Loss

A3. Type of property sold:
(see instructions)

2.	 Qualifying Oklahoma capital gain from installment sales reported on Federal
	 Schedule D, line 11. (Provide a copy of Federal Form 6252.)
		
Type of property sold (See instructions)............... 	

...... 2

3.	 Qualifying Oklahoma net capital gain from sale of business property reported on
	 Federal Schedule D, line 11. (Provide a copy of Federal Form 4797. If gain/loss
	 is from a Federal K-1, complete the Worksheet on page 2 and provide a copy
	 of the Federal Schedule K-1.)
		
Type of property sold (See instructions)............... 	

...... 3

4.	 Other qualifying Oklahoma net capital gain or (loss) reported on Federal
	 Schedule D, line 11, not included on lines 2 and 3 above. (Provide a copy
	 of the applicable Federal form[s].)
		
Type of property sold (See instructions)............... 	

...... 4

5. 	Qualifying Oklahoma net capital gain or (loss) from partnerships, S corporations,
	 estates or trusts reported on Federal Schedule D, line 12. (Complete the
	 worksheet on page 2 and provide a copy of the Federal Schedule K-1.)
		
Type of property sold (See instructions)............... 	

...... 5

6. 	Add amounts in Columns F and G on line 1 and lines 2 through 5.................................................... 6
7. 	Qualifying Oklahoma capital loss carryover reported on Federal Schedule D, line 14
	 (See instructions)............................................................................................................................... 7
8. 	Qualifying Oklahoma net capital gain. Subtract line 7 from line 6. (If zero or less, enter “0”.)........... 8
9. 	Net capital gain. (See instructions) (If zero or less, enter “0”.) .......................................................... 9
10. Oklahoma Capital Gain Deduction. Enter the smaller of lines 8 or 9. (Do not enter less than zero.).... 10

Provide Federal Form 1040, Schedule D and Form(s) 8949.

Oklahoma
Amount
G. 	Gain or
(Loss)

2
0
2
3

2023 Form 561-NR - Page 2

Oklahoma Capital Gain Deduction
for Part-Year and Nonresidents Filing Form 511-NR
68 OS Sec. 2358 and Rule 710:50-15-48

Worksheet - (Provide with Form 561-NR)
Social Security Number

Name(s) as Shown on Return

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

or 	

Line 5

Complete a separate worksheet for each piece of property sold. Provide a copy of the Federal Schedule K-1.
Name of pass-through entity:_________________________________________ 	FEIN: _______________________
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 that 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:
	

1.	 The sale of the real or tangible personal property located within Oklahoma that has been owned for at least five
uninterrupted years prior to the date of the transaction that gave rise to the capital gain;

	

2. 	 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

	

3.	 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 enterprise 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 (PTE) is eligible for the Oklahoma
capital gain deduction, provided the individual has been a member of the PTE for an uninterrupted period of the applicable two or five years, and the PTE 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 PTE must provide supplemental information to
the individual identifying the pass-through of qualifying capital gains.
NOTE: If you are a member, either directly or indirectly, of an electing PTE, the capital gain/loss from the PTE that is
covered by the election pursuant to the provisions of the Pass-Through Entity Act of 2019 is not entered on this form to
compute your Oklahoma Capital Gain Deduction. The gain/loss will be entered on the PTE’s Oklahoma Capital Gain Deduction form, Form 561-PTE.
Installment sales...
Qualifying gains included in an individual taxpayer’s Federal adjusted gross income for the current year that are derived
from installment sales are eligible for exclusion, provided the appropriate holding periods are met.

2023 Form 561-NR - Page 3

Oklahoma Capital Gain Deduction for
Part-Year and Nonresidents Filing Form 511NR
68 OS Sec. 2358 and Rule 710:50-15-48
Specific Instructions

Lines 1-5: Type of Property Sold
Enter the number in the box that corresponds to the type of property sold:
	 1.	 The sale of stock in a qualified Oklahoma corporation.
	 2.	 The sale of an ownership interest in a qualified Oklahoma company, limited liability company, or partnership.
	 3.	 The sale of qualified real property located within Oklahoma.
	 4.	 The sale of qualified tangible personal property located within Oklahoma.
	 5.	 The sale of qualified 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.
	 99.	 For lines 2-5, enter a “99” if the net gain/loss is from the sale of more than one type of property.
Line 1:
List qualifying Oklahoma capital gains and losses from Federal Form(s) 8949, Part II or from Federal Schedule D, line
8a. Provide a copy of Form(s) 1099-B if the qualifying Oklahoma capital gain or loss is reported on Federal Schedule D,
line 8a. In Column A, line A1 enter the description of the property as shown on Federal Form 8949, Column a or on Form
1099-B. On line A2 enter either the Oklahoma location/address of the real or tangible personal property sold or the Federal Identification Number of the company, limited liability company or partnership whose stock or ownership interest was
sold.
Complete Columns B through E using the information from Federal Form 8949, Columns b through g or from Form 1099B. In Column B, enter the date the property was acquired. If you entered “VARIOUS” or “INHERITED” on your federal
form, enter the date you actually acquired the property. For Column F combine Columns D and E. Do not include gains
and losses reported on Form 561-NR lines 2 through 5.
In Column G enter the qualifying Oklahoma capital gains and losses reported in Column F that were sourced to Oklahoma
on Form 511-NR, Schedule 511-NR-1, line 7 “Oklahoma Amount” column.
Line 2:
Column F: If Federal Form 6252 was used to report the installment method for gain on the sale of eligible property on the
Federal return, compute the capital gain deduction using the current year’s taxable portion of the installment payment.
Provide Federal Form 6252. Capital gain from an installment sale is eligible for the Oklahoma capital gain deduction provided the property was held for the appropriate holding period as of the date sold.
Column G: Enter the capital gain from an installment sale of eligible property reported in Column F that was sourced to
Oklahoma on Form 511-NR, Schedule 511-NR-1, line 7 “Oklahoma Amount” column.
Line 3:
Column F: Enter the qualifying Oklahoma net capital gain from the Federal Form 4797 that was reported on Federal
Schedule D. Provide a copy of the Federal Form 4797. If reporting a gain/loss from a Federal Schedule K-1, complete the
worksheet on page 2 and provide a copy of the Federal Schedule K-1.
Column G: Enter the other qualifying Oklahoma capital gain from Federal Form 4797 reported in Column F that was
sourced to Oklahoma on Form 511-NR, Schedule 511-NR-1, line 7 “Oklahoma Amount” column.
Line 4:
Column F: Enter other qualifying Oklahoma capital gains reported on Federal Schedule D, line 11. Provide the applicable
Federal form(s). If not shown on the Federal form, provide a schedule identifying the type and location of the property
sold, the date of the sale, and the date the property was acquired.
Column G: Enter the other qualifying Oklahoma capital gains reported in Column F that were sourced to Oklahoma on
Form 511-NR, Schedule 511-NR-1, line 7 “Oklahoma Amount” column.
Line 5:
Column F: Enter qualifying Oklahoma net capital gain or loss from partnerships, S corporations, trusts and estates. Complete the worksheet on page 2 and provide a copy of the Federal Schedule K-1.
Column G: Enter the qualifying Oklahoma net capital gain or loss from flow-through entities reported in Column F that was
sourced to Oklahoma on Form 511-NR, Schedule 511-NR-1, line 7 “Oklahoma Amount” column.

2023 Form 561-NR - Page 4

Oklahoma Capital Gain Deduction for
Part-Year and Nonresidents Filing Form 511NR
68 OS Sec. 2358 and Rule 710:50-15-48
Specific Instructions - continued

Line 7:
Column F: Enter the total qualifying Oklahoma capital loss carryover from the prior year’s return.
Column G: Enter the qualifying Oklahoma capital loss carryover reported in Column F that was sourced to Oklahoma on
Form 511-NR, Schedule 511-NR-1, line 7 “Oklahoma Amount” column.
Line 9:
Column F: The Oklahoma capital gain deduction, in the “Federal Amount” column, may not exceed the net capital gain included in Federal adjusted gross income. The term “net capital gain” means the excess of the net long-term capital gains
for the taxable year over the net short-term capital loss for such year. If a capital loss, enter “0”.
Column G: The Oklahoma capital gain deduction, in the “Oklahoma Amount” column, may not exceed the portion of the
net capital gain sourced to Oklahoma. This is the net capital gain from Form 511-NR, Schedule 511-NR-1, line 7 “Oklahoma Amount” column. If there is no net capital gain, enter “0”.
NOTE: The net capital gain must be decreased for any capital gain or increased for any capital loss from the sale of state
and municipal bonds exempt from Oklahoma income tax.
Line 10:
Column F: Compare lines 8 and 9. Enter the smaller amount here and on Form 511-NR, Schedule 511-NR-B, line 13
“Federal Amount” column.
Column G: Compare lines 8 and 9. Enter the smaller amount here and on Form 511-NR, Schedule 511-NR-B, line 13
“Oklahoma Amount” column.