Oklahoma Form 561-NR - Capital Gain Deduction (2023)

What Is Schedule 561 NR Oklahoma

Schedule 561 NR, also known as the Oklahoma Capital Gain Deduction for Part-Year and Nonresidents, is used by individuals who file form 511-NR to report and deduct qualifying capital gains derived from Oklahoma assets and fulfill specific holding period criteria. These assets may include real estate, tangible personal property, intangible personal property, and ownership interests in Oklahoma companies, LLCs, partnerships, or proprietorship business enterprises.

Who Must File 561 NR

• Nonresidents or part-year residents who have sold real or tangible personal property in Oklahoma that was owned for at least five uninterrupted years before the sale.
• Those who sold stock or an ownership interest in an Oklahoma company, limited liability company, or partnership owned that interest for at least two uninterrupted years before the transaction.
• Individuals are divesting from Oklahoma entities whose primary headquarters were in Oklahoma for at least three uninterrupted years preceding the sale.
• Taxpayers hold qualifying assets through pass-through entities, provided they maintain uninterrupted membership in the entity for the required duration of two or five years.

How To Fill Out Oklahoma Form 561 NR

Filling out the Oklahoma form 561-NR for 2023 involves several steps:

Start by providing your name and social security number on your return.

Detailing Capital Gains and Losses: For each asset, fill in the details like the description of the property, location/address or Federal ID Number, date acquired, date sold, proceeds, and cost or other basis. Indicate the type of property sold based on the guidelines provided in the form.

Calculating Gains and Losses: Enter the Federal and Oklahoma amounts for gain or loss. For specific cases like installment sales, sale of business property, or capital gains from partnerships, S corporations, etc., follow the detailed instructions provided in the form.

Summarization and Deduction Calculation: Add the amounts in specified columns and lines to get the total qualifying Oklahoma net capital gain. Calculate the Oklahoma Capital Gain Deduction by considering the lower of specific calculated figures.

Attachments: Attach relevant federal forms like schedule D, form 8949, form 6252, form 4797, or schedule K-1 as required.

When To File Form 561 NR

Form 561 NR should be filed alongside the Oklahoma personal income tax return Form 511-NR, typically due on April 15th of the following year in which the income was earned. If April 15th falls on a weekend or holiday, the deadline moves to the next business day.