I have a rental property in Oklahoma but I don't live there. Why is Turbo tax trying to make me fill out Capital Gains/Losses on my NR Oklahoma return?

[rgillen1]

I have assets sold in another state so these assests are on my federal return. However, I haven't lived in OK at all during this time and yet Turbo Tax is trying to force me to put these capital gains on my OK return and they only qualify as "exclusions" if it's the sale of Oklahoma property. I've seen many other posts of a similar issue without real resolution from TurboTax.

[MaryK4]

Unfortunately, TurboTax is programmed to bring over all capital gains and requires users to exclude any that do not qualify for the exclusion.  Oklahoma has an exclusion from income for capital gains from Oklahoma sources, but it transferred all capital gains from the federal return.  

[rgillen1]

This would be fine except there are only two options for Oklahoma:

1) Check the box that says "this item does NOT qualify for exclusion" (which it does)

or 

2) Put in an Oklahoma address for it and which of the three exclusion categories it qualifies for:

"1) Real or tangible personal property located within Oklahoma must be owned for at least five years prior to the date of sale.
 2) Stock or ownership in an Oklahoma company, or partnership, owned for at least two years prior to the date of sale.
 3) Sale of real property or personal property as part of the sale of assets in an Oklahoma company owned for at least two years prior to the date of sale."

I do not see any way to exclude it from my return if TurboTax is incorrectly populating this form automatically.

[PatriciaV]

Please clarify if the property you sold was in Oklahoma.

[rgillen1]

No, it was not sold.  It is just rental income that I'm filing an Oklahoma return for but Turbo Tax is also listening all of my stock sales that have nothing to do with Oklahoma.  I would be fine with checking an "exclude" option but the only two options I have are to either say "this item doesn't qualify for exclusion" (which presumably would tax me incorrectly) or to choose one of those categories in my previous message, none of which apply to stock sales purchased and sold while in another state.

[AmyC]

Rental income is on the federal sch 1. When you select nonresident for OK, it asks how much of your sch 1 income is from OK. You need to enter the correct amount.

Beyond that, zero or blank should be your answer.

The program will ask about income allocation

Then it asks about capital gains and losses - which would be zeroes for you

OK continues on with business, government obligations, whatever comes over from your federal to determine your OK income.

[rgillen1]

I think there's some confusion or I'm not communicating well. 

I put capital gains on my federal return. Some of those belong to Oklahoma (my rental property) and the rest do not (my stock sales).  On the page you refer to, I indicated that ONLY the amount of my rental property belongs to Oklahoma. However, TurboTax is making me go through my federal return stock sales LINE BY LINE and indicating whether they are excluded or not.  This is problematic because it only gives me two options: 1) say it's excluded by saying it's an Oklahoma property (it's not) or 2) say it's not excluded (it is).  Either way I put this is wrong because TurboTax is forcing me to include non-Oklahoma capital gains from my federal return on my Oklahoma return.