I am an Oklahoma resident. Why is turbo tax putting my stock trades in a form 561? These are not Oklahoma properties . Is anyone else having this problem?

[MayaD]

As DMarkM1 mentioned, The OK form 561 is used to report sale of OK property or interest (such as stock) in a OK property, company, partnership that resulted in a capital gain. You can get a deduction from those OK capital gains on your OK taxes using the form 561.

For more information please check Instructions for form 561

[sjalowiec]

I have the same issue .. my stock sales from the federal return are being transferred to Oklahoma form 561, however the stock sales are not oklahoma based properties or assets.  the response I read from the original question did not discuss why this is happening.  Hence , I am still stuck. 

[JamesG1]

The transactions are being  transferred to Oklahoma form 561 Capital Gain Deduction for Residents.  The software thinks the sale may qualify for the deduction.

If the sale does not qualify for the deduction, select This property does not qualify for deduction.

General Information

Individual taxpayers can deduct qualifying gains receiving capital gain treatment that are included in Federal adjusted gross income. “Qualifying gains receiving capital treatment” means the amount of net capital gains, as defined under Internal Revenue Code Section 1222(11). The qualifying gain must result 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.

@sjalowiec 

[Sudarshan Dhall]

I am having the same problem.  As a result, I can't file electronically.   Anybody found a solution?

[Sudarshan Dhall]

I do not see the screen shown where I can say "The property does not qualify for Oklahoma deduction".  One screen asks for type of the property with 5 choices of Oklahoma property.  The other screen asks for the address.  How do I get to the appropriate screen.

[massao2003]

It doesn't help to uncheck or check the box (whether it qualifies or not). I have tried both ways. It keeps putting stock sales into Form 561 Oklahoma. What a terrible software for so much money. I want to know why are there not more Experts answering these questions.  None of the Experts have answered it because it still doesn't work.

[massao2003]

I discovered, using Brave browser, messed it up. When I used Chrome then when I unchecked the boxes in Form 561, it removed them from the state.  Why it puts Fed stock and mutual fund stuff in the state (capital gains) is beyond me. This is the 3rd yr in a row I've had to deal with this. I will look into other tax software so see if they do it better with Oklahoma. I've complained about this now for 3 yrs. Why can't TurboTax fix this? They should have a box to check in the Federal return that the sales/capital gains are exempt or not-exempt.

[mcraig13824]

There is a check box next to each stock entry. Check it and the stock will be removed from your Oklahoma Form 561.

There is an Asterix at the top of the page and an explanation at the bottom. Personally I think the default should be no stock sales are entered into form 561 unless specifically asked for.

[mcraig13824]

I finally just overroad the amount on line 10 of Form 561.