Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Feb 23, 2025 10:03:48 AM

How do I exclude capital gains in Oklahoma state return?

0 7 2530
1 Best answer
Expert Alumni
Mar 5, 2025 9:26:35 AM

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 

7 Replies
Expert Alumni
Feb 23, 2025 10:16:04 AM

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.

Level 1
Feb 23, 2025 10:39:48 AM

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

Expert Alumni
Mar 5, 2025 9:26:35 AM

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 

New Member
Mar 12, 2025 6:05:38 AM

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.

Expert Alumni
Mar 14, 2025 2:36:36 PM

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 

New Member
Apr 8, 2025 9:31:53 PM

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

Expert Alumni
Apr 9, 2025 9:47:32 AM

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.