I’m trying to complete my Oklahoma tax return, but I’m having trouble with Form 561. I’m attempting to exclude some capital gains, but when I check the box to claim the exclusion, it doesn’t work.

[MaryK4]

TurboTax updated this section for 2025 so you only check the box if you are including the asset.  If you are excluding you do not have to enter any of the information.  

[Rakeshchru]

The issue is that my stock sales from my federal return are being carried over to Oklahoma Form 561. However, these stock sales are not related to Oklahoma-based property or assets. The stocks I sold are not shares of an Oklahoma corporation, so they should qualify for exclusion.

TurboTax instructs me to check the box in the “*” column if the gain or loss qualifies for exclusion. After I check the box during the review process, TurboTax generates an error stating: “Type of property must be selected.”

The only available options are:

1. Stock in an Oklahoma corporation

2. Interest in an Oklahoma LLC or Partnership

3. Real property located in Oklahoma

4. Tangible personal property located in Oklahoma

5. Intangible personal property as part of an Oklahoma sale

None of these categories apply to my stock sales, since they are not connected to Oklahoma property or entities.

[MaryK4]

@Rakeshchru Pardon my mis-read of the question.  ONLY Oklahoma capital gains can be excluded.

Oklahoma Capital Gain Deduction  68 OS Sec. 2358 and Rule 710:50-15-48

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, 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.