I sold a rental property last year. I owned it more that 5 years. Does anyone know if rental properties are part of the "qualifying Oklahoma property" that is not subject to capital gains for state taxes?

[MarilynG1]

Yes, Oklahoma property owned for more than five years is not subject to Capital Gains.  

Click this link or more info on Capital Gains Deduction in Oklahoma on Form 561. 

[Harvest704]

When filling out the Oklahoma state portion of the taxes, if I check that it was a qualifying Oklahoma property, it wants a FEIN number (I don't have one) and asks for the name of a pass-through entity, the date the pass-through entity was created and dissolved. Would that be the date I bought and sold the rental property? Would the FEIN number be my social security number? Thanks again. 

[DMarkM1]

No, you should not need to enter any passthrough entity information.  The same is true for the Federal ID number.  You have the option to enter an ID number if you are a passthrough entity or the OK location of the property.  

Assuming you have a capital gain from your federal entries in the "Wages and Income" section you can follow these steps.

1. Edit/Continue your OK state return
2. Continue through the residency questions and sale of Government Obligations page
3. Answer "No" to the Gains/Losses from Passthrough Entity question
4. Continue through to arrive at the page titled "Summary of Oklahoma Capital Gains and Losses"
5. Edit the "Land sale" item
6. Put in the Ok address for "Location"
7. Blank out the "Federal ID" box
8. Select the "Real Property within OK" option
9. Continue
10. Done
11. Continue (even though the page says you may be missing information)
12. Continue through the rest of the OK interview

In online versions you can view the OK tax summary with the steps below.  In desktop versions use the forms mode to view the OK form 511.

The OK Adjusted Gross Income will reflect the subtraction of the land sale gain.

[Criticaleye]

I completed the steps you indicate but the Cap Gain Wks under Form 561 continues to ask for "Name of pass-through entity and FEIN.  I went back through the easy step wizard multiple times.  at one step it says "Sale of Business Property" and says on your federal return you reported $##,### in capital gains (or losses) from the sale of business property.  How much of this gain or loss was from the sale of qualifying Oklahoma property?  Then it asks you to select the type of property sold and I select 3 - Real property within OK and click continue.  The next screen "Oklahoma Property Descriptions" says that Oklahoma needs a little more information about the source of this Oklahoma income.  For each source, select Add to add a description for Oklahoma.  I entered the description of property and location of property but it will not let me go forward.  It keeps flagging the capital gains worksheet saying it needs the pass through entity info:   Name of passthrough entity or business, federal identification number or passthrough entity or business, if you sold your ownership in the passthrough entity or business, enter the date sold.  After I finish the return it says "we found some errors" and takes me to the Check this Entry which are the Capital Gain Deduction Worksheet: Pass-Through Entity Name must be entered, then Capital Gain Deduction Worksheet: Federal ID Number must be entered, then Capital Gain Deduction Worksheet:  Date Ownership Acquired must be entered.  Please help!

[ThomasM125]

Since you owned the property as an individual, the federal ID number would be your social security number, so you should enter that if the program will allow it. The same goes for your name, and the date acquired would be when you took ownership of it.