How do I exclude capital gains in Oklahoma state return?

[MaryK4]

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: 

1. 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;
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.

[j2b-cruiser]

These are capital gains from the sell of stock not-related to Oklahoma.  The return is for a non-resident.

[MaryK4 · Accepted solution]

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 

[Mozy]

How do you identify the one that qualify for the exclusions? 50 stocks have been sold and only one qualifies for the exclusion of Oklahoma taxes.

[AmyC]

Almost immediately, the program asks about sale of government obligations, federal or municipal. Select the appropriate yes and the next screen has you enter the exempt amount.

@Mozy 

[Yura]

If I resident of Texas, I bought and sell stock at Texas, Why Turbotax count that I need to pay Oklahoma gain tax? Im just working at Oklahoma and must file as nonresident with Form 511-NR.  I earned money not at Oklahoma, im not resident of Oklahoma, but Turbotax count that gain as Oklahoma income

[MayaD]

On your Oklahoma non-resident return enter 0 for Oklahoma amount of capital gain or any other income. Only income earned from working in Oklahoma is taxable on OK return. 

[santacruz]

I've had this problem for years. Last time it took the tax expert hours to sort through it. Big flaw in the TurboTax form and no real direction since it was stated at the beginning of the process that no part was attributed to Oklahoma.

To fix it do the following: for each stock trade go to Edit. Check the box that says it is not subject to exclusion (this is terribly unclear becuase it is being excluded). You can continue and type in $0 for the oklahoma portion, but not sure if this is necessary. Just hit the Back arrow and the selection will be saved. No need to try to continue on to enter aquired dates and other nonsense. 

This worked for me.