Oklahoma capital gains- type of property

[tool-man]

I sold a municipal bond and have capital gains. What type of property is a municipal bond? 

[MarilynG1]

If you received a 1099-B for the sale of your municipal bond, it's entered as an Investment Sale, under 'Stocks, Crypto, Mutual Funds, Bonds, Other'.  

Capital gains on municipal bond investments are taxable as short- or long-term capital gains, depending on how long you have held the investment.  The gain may not be taxable in your state, which you can verify through your state DOR.  If you've been reporting your interest each year on Form 1099-INT, you gain on the sale will be less. 

Here's more detailed info in Guide to Investment Bonds.

@tool-man 

[tool-man]

Thanks for replying.

I don't think I'm being clear. Form 561, TurboTax provides five different choices for type of property sold. I need to know which type for municipal bonds? This would have been a long-term investment.

[AmyC · Accepted solution]

You went past the spot you need. When you first started the return, it asked about residency and then it asked about sales of government obligations. You need to go back and select yes at that spot for OK municipal bonds.

The next screen has you enter the amount of gain/loss.

You were at this spot:

Oklahoma Form 561 (page 3).

But 561 has a note for government obligations

[tool-man]

Amy - thank you. I made the correction as you noted. You saved me some money.