Can I fully deduction Oklahoma Capital Gains for Rental Property I sold in 2024?

Forum|Forum|11 months ago
April 7, 2025
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I'm a resident in TX due to work while my husband resides in OK. In 2024, we sold our rental property located in Oklahoma for which we held for more than 10 years. We didn't live in that rental property in any year or converted it to a personal use. It was 100% rental the whole time. Due to the length of time we held the property, Turbo Tax seemed to suggest that this is a qualifying Oklahoma property and I should be able to fully deduct the gain from Oklahoma taxable income? Is that correct?

TurboTax Home & Biz Windows

MAK70

Yes, you can deduct the capital gain.

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 the sale of 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.

2024 Form 561 Oklahoma Capital Gain Deduction