If you have capital gains on your federal return, TurboTax will automatically transfer them to the Oklahoma state section and ask you to identify the one that qualify for the exclusions. For the exclusion, the capital gains must be 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; 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 thatgave rise to the capital gain; or 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.

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j2b-cruiser

Solved

How do I exclude capital gains in Oklahoma state return?

Forum|Forum|1 year ago
February 23, 2025
1 reply
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Best answer by MAK70

You do not get to exclude capital gains on a nonresident Oklahoma return:

The Oklahoma taxable income of a nonresident individual is calculated as if all income were earned in Oklahoma, using Form 511-NR. The Federal Adjusted Gross Income (AGI) will be adjusted using the Oklahoma adjustments to arrive at AGI from all sources. The AGI from all sources is used to determine the taxable income. After the taxable income is calculated, it is prorated using a percentage of the AGI from Oklahoma sources divided by the AGI from all sources. This prorated tax is the Oklahoma tax.

@j2b-cruiser

MAK70

If you have capital gains on your federal return, TurboTax will automatically transfer them to the Oklahoma state section and ask you to identify the one that qualify for the exclusions.

For the exclusion, the capital gains must be 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;
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
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.