On the Oklahoma State Form 561NR it is asking me w...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
gwyn-lightfoot
New Member

On the Oklahoma State Form 561NR it is asking me what type of property I sold and I have to answer it. I sold the property in Colorado not while I was in Oklahoma.

None of the answers in the drop down are that I didn't sell the property in Oklahoma. This is a software flaw. Not good Turbo Tax.
3 Replies
MaryK1101
Expert Alumni

On the Oklahoma State Form 561NR it is asking me what type of property I sold and I have to answer it. I sold the property in Colorado not while I was in Oklahoma.

It does not matter that you did not sell the property in Oklahoma. Oklahoma uses your total income to determine the tax rate and then applies that rate to your Oklahoma income only.

 

From the Individual Nonresident/Part-Year Income Tax Return Packet:

The Oklahoma taxable income of a part-year individual or nonresident individual shall be calculated as if all income were earned in Oklahoma, using Form 511NR. The Federal Adjusted Gross Income (AGI) will be adjusted using the Oklahoma adjustments, allowed in 68 Oklahoma Statutes (OS) Section 2358, to arrive at AGI from all sources. The AGI from all sources is used to determine the taxable income. After the taxable income is calculated, it is prorated using a percentage of the AGI from Oklahoma sources divided by the AGI from all sources. This prorated tax is the Oklahoma tax.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
gwyn-lightfoot
New Member

On the Oklahoma State Form 561NR it is asking me what type of property I sold and I have to answer it. I sold the property in Colorado not while I was in Oklahoma.

Yes, totally agree, but the options I have to choose from for the property type sold all say ... sold in Oklahoma or “Oklahoma” ... I can’t choose that’s it a property I sold while not living in Oklahoma. It was sold when we lived in Colorado the first of the year. 

BillM223
Employee Tax Expert

On the Oklahoma State Form 561NR it is asking me what type of property I sold and I have to answer it. I sold the property in Colorado not while I was in Oklahoma.

Last year, this method worked to exclude capital gains on properties outside of Oklahoma. Please let me know if this works for you:

 

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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
v
Privacy Settings