518-A: 2024 Form 518-A Venture Capital Company Report for Investors (2024)
Oklahoma · Oklahoma Tax Commission · Used for tax years 2024
Oklahoma Form 518-A is a Venture Capital Company Report for Investors. It reports investments in Oklahoma Business Ventures, the venture capital credit available and allowable for 2024, and unused credit carryovers.
Who files this form
The Venture Capital Company must provide Form 518-A to the investor when the investment becomes eligible for the credit.
An investor claiming the credit must include a copy of Form 518-A with their income tax return. The Venture Capital Company must also file Form 518 before the credit will be allowed.
When it's due
For a credit that becomes eligible in tax year 2024, the Venture Capital Company must provide Form 518-A to the investor by January 31 of the following year.
The text does not give an income tax return filing deadline.
What you'll need
- Form 518-A: Include a copy with the investor’s income tax return when claiming the credit.
- Form 511-CR: Transfer the credit claimed for the year to this form.
- A retained copy of Form 518-A: Keep a copy to include with each later return on which the 2024 credit carryover is claimed.
Form 518-A asks for the investor’s and Venture Capital Company’s identification numbers, names and addresses, plus the company’s telephone number. It also asks for investment dates, investment amounts and credit amounts. Part 2 asks for credits used in prior years.
How to file
- Complete Part 1 with the dates and amounts the Venture Capital Company invested in Oklahoma Business Ventures.
- Multiply the investment amount in column 2 by 20% to calculate column 3. Enter the credit eligible to be claimed in 2024 in column 4.
- Have an officer or general partner of the Venture Capital Company sign and date the form.
- Carry the credit claimed for the year to Form 511-CR and include a copy of Form 518-A with the investor’s income tax return.
- If the entire credit is not claimed, complete Part 2 for subsequent carryover years.
The provided text does not specify a mailing address or an e-filing method.
Common mistakes
- Leaving out Form 518-A: A copy must accompany the investor’s income tax return if the credit is claimed.
- Overlooking Form 518: The Venture Capital Company must file it before the credit will be allowed.
- Claiming the original credit in the wrong year: The credit may only be claimed in the tax year when the Venture Capital Company invests the funds in an Oklahoma Business Venture, subject to the carryover rules for unused credit.
- Skipping the carryover calculation: Complete Part 2 if the entire credit is not claimed. Unused credit may be carried forward, in order, for no more than three years.
- Failing to keep a copy: Keep Form 518-A for each later return on which the 2024 credit carryover is claimed.
Questions people ask
How much is the credit?
The credit is 20% of a qualified investment in a qualified Venture Capital Company that is subsequently invested in an Oklahoma Business Venture. The funds must be used for a legitimate business purpose consistent with the business venture’s governing documents.
Can I carry forward an unused credit?
Yes. If the credit exceeds your tax liability, the unused amount may be carried forward, in order, to the next three years. Use Part 2 to calculate the 2024 credit carryover.
Are older investments or newer companies excluded?
No credit is allowed for qualified investments made before January 1, 1987. An investor in a Venture Capital Company organized after July 1, 1992, may not claim the credit.
Can a pass-through entity allocate the credit to its owners?
Yes. A pass-through entity entitled to the credit must allocate it to one or more shareholders, partners or members. The total allocated credits cannot exceed the credit the entity is entitled to.