Oklahoma version is putting my long term capital gain on OK form 561 is this a bug I can't answer these questions. Wants an OK location?

[tulsaag]

The questions the program is asking is location of assets, Fed ID

[BillM223]

May I assume that you have sales of capital assets that were not in Oklahoma, but Oklahoma thinks that they are? The following answer assumes that you have sales from outside Oklahoma.

***

You evidently have capital gains from sales outside of Oklahoma. The way to handle this in the Oklahoma is a bit confusing.

First, when you see the summary of Oklahoma Capital Gains and Losses, press Edit for each gain.

The next screen will read Oklahoma Capital Asset Location and Type for each sale. Check the box "This property does not qualify for exclusion". If you go to Form mode (if you are using the desktop software or have already paid for the Online product), you will see that the box in the far left column of form 561NR has been checked for that sale, indicating that you want to exclude a gain or loss (see form). 

This is completely counter-intuitive, but it gets you the result that you want, because it reports your Oklahoma gain as zero.

Note form 561NR is for nonresidents - I don't know if you are filing as a nonresident or what.

Alternative, you can not check the box, but enter the federal ID number for the sale. Then, on the next screen, enter the Oklahoma gain as zero. This will achieve the same result - no gain reported in Oklahoma.

[CallMe]

The solution described below by BillM223 did not work. I have gone round and round checking each "this does not qualify for an exemption" box, but each time I hit continue, it tells me I must enter the date of acquisition, which was not reported and I have no way of knowing.  I have gone to the form and checked the box to the left of each entry, as he described, but nothing works.  I imported all the 1099s and don't know why Turbo Tax populated an Oklahoma form 561 with non-Oklahoma related information.  Please help!

[joetf]

I have the same issue.  It appears to me to be a glitch in the Turbotax program.  They take capital gains from the federal form and somehow assume they are related to Oklahoma.  Go to the form 561 NR and delete it.  The program will show an error but you still should be able to print your Oklahoma tax forms and mail them in.  Probably a waste of money to get the Oklahoma State from Turbotax if you are a non-resident of Oklahoma.

[JohnKalan]

I have the same problem. I am stuck in a loop. Can we get this fixed?

[Anonymous]

The problem with OK Form 561 is still not fixed. I can't go forward. 

[CarissaM]

When you complete the form in Turbo Tax, what is the issue you are currently having? The thread you are commenting on is an old thread, so we want to ensure we provide the most up to date information @Anonymous.

[Anonymous]

It involves a question that is not clearly worded (bean-counter speak) about whether long-term capital gains occurred in Oklahoma. I went back, reread the section, and decided that it did not apply. When I made the change, the problem cleared up. 

[gsharp3404]

This does not work! THIS IS A MAJOR BUG!  I am no tax expert and expect this program to do it for me!  I have already filed my taxes and could not figure out why the Oklahoma taxes are so low.   I understand now.  it put all the capital gains as Oklahoma exclusion.  What a mess!  I will have to try and file an extension.  Where do I get a refund of the price I paid for this horrible program?  As an aside, I upgraded today and it took the distributed dividends off the K1 form.  Now what, geez.  This is not to mention many little annoying bugs in the step-by-step.  Very sloppy program.  

[BillM223]

What "does not wok"? I assume you have capital gains on your federal return, right? Are they in Oklahoma or not? Are you using the Online software or the CD/download software?

Users have told me that the process I described at the top of this thread worked for them, so I need to find out your situation and what didn't work for you.

@gsharp3404

[gsharp3404]

Bill, I was following your instructions in the prior reply to this problem.  I cannot find a summary of Oklahoma capital gains and losses to press edit on.  I have been multiple times through the program and the forms and cannot find anything that says a checkbox for this property "does not qualify for exclusion"  this includes federal state and every form I looked at.   They are NOT Oklahoma gains and I AM an Oklahoma resident.  I am using the cd version of TurboTax business and this is a complex trust entity.   I am enclosing a screenshot of 1. work around 2. form 561 and 3. area on 513 where there should be capital gains. 

[BillM223]

"I am using the cd version of TurboTax business and this is a complex trust entity."

Everything I have written is in reference to 1040 returns. Next time, please lead with this information about being a business return. Please give me some time to work up a business test.

[exedratax]

Having same issue with OK Form 561-NR. I am using TurboTax download on Mac desktop to prepare a personal 1040. I do have capital from selling property in TX. My only OK income are royalties which are handed okay. (Not gracefully, but was able to get TT to accept correct information.) For capital gains, I entered 0 for Federal and 0 for OK when asked. (Never had access to a list of capital gains to annotate except in form mode and all entries looked okay.) TT is looping when I try to file on requiring an entry in an information field asking for the type of property sold even though TT shows 0 for values for Federal and OK amounts. (This on Line 3 of Form 561-NR.) All allowed entries assume the asset is in OK. I hesitate to enter a value in case it raises questions about accuracy of the 0 capital gain entry. Help!

[exedratax]

Correction: I was prompted on some stock sales to flag as not qualified for exclusion. For some reason TT did log my CD and bond redemptions, which had 0 gains, on Form 561-NR Line 1, but at least flagged them as not qualified for exemptions. I guess TT didn't ask about those earlier, unlike the stock sales,  but knew they did not qualify.

[exedratax]

Update in case it may help someone: I gave up waiting for a solution and entered a value for the Type of Property Sold question TurboTax was looping on. I decided to risk that the $0 values for the sale would be accepted and the unneeded type of property code would be ignored. Once this was done, the OK taxes passed TurboTax's review and I was able to file them electronically. Lo and behold, when I printed the filed forms for record, Form 561-NR was not included! TurboTax properly determined that, with no OK capital gains to report, the form was not needed. Therefore I should not have to worry about the inconsistent data (Type of Property Sold code on a $0 entry on Line 3) causing the return to be rejected.

Oh, in my original message I forgot to say that it was TurboTax Premier that I am using. @BillM223