561-NR-F: 2024 Form 561-NR-F Capital Gain Deduction for Trusts and Estates Filing Form 513NR (2024)
Oklahoma · Oklahoma Tax Commission · Used for tax years 2024
Oklahoma Form 561-NR-F calculates the capital gain deduction for trusts and estates filing Form 513-NR. It reports qualifying Oklahoma capital gains and losses, accounts for qualifying capital loss carryovers, and determines the deduction.
Who files this form
Form 561-NR-F is for trusts and estates filing Oklahoma Form 513-NR that claim a deduction for qualifying Oklahoma capital gains included in federal taxable income.
Qualifying gains must come from:
- Real or tangible personal property located in Oklahoma and owned for at least five uninterrupted years before the sale.
- Stock or an ownership interest in an Oklahoma company, limited liability company, or partnership owned for at least three uninterrupted years before the sale.
- Oklahoma property sold as part of a sale of all or substantially all of an Oklahoma business’s assets. The property must meet the stated ownership and business-use requirements for at least three uninterrupted years before the sale.
An Oklahoma company, limited liability company, or partnership must have had its primary headquarters in Oklahoma for at least three uninterrupted years before the sale.
Use only capital gains and losses that have not been distributed to beneficiaries. Do not include amounts included in the income distribution deduction on Form 513-NR. Beneficiaries compute their deductions on their own income tax returns.
What you'll need
Provide Federal Form 1041, Schedule D, and Form(s) 8949.
Depending on the gains reported, also provide:
- Line 1: Form(s) 1099-B if the qualifying gain or loss is reported on Federal Schedule D, line 8a.
- Line 2, installment sales: Federal Form 6252.
- Line 3, other qualifying gains or losses: The applicable federal forms. If those forms do not show the details, provide a schedule identifying the property type and location, sale date, and acquisition date.
- Line 4, pass-through gains or losses: Federal Schedule K-1 and the worksheet on page 2. Complete a separate worksheet for each property sold.
- Line 5, business property: Federal Form 4797. If the gain or loss comes from a Federal Schedule K-1, also provide that K-1 and complete the page 2 worksheet.
You will also need property descriptions, Oklahoma locations or business federal identification numbers, acquisition and sale dates, sales proceeds, and cost or other basis information. For pass-through gains, the entity must provide supplemental information identifying the qualifying capital gains.
Common mistakes
- Including gains or losses distributed to beneficiaries. Exclude any portion included in the income distribution deduction on Form 513-NR.
- Including pass-through gains or losses covered by the Pass-Through Entity Act election. These belong on the entity’s Form 561-PTE, not this form.
- Using “VARIOUS” or “INHERITED” as the acquisition date. Enter the date you actually acquired the property, even if your federal form uses those terms.
- Counting the same gain twice. Do not include on line 1 gains or losses reported on lines 2 through 5.
- Entering a negative deduction. Enter zero on lines 8 or 9 if the result is zero or less. Line 10 cannot be less than zero.
- Reporting the deduction in the beneficiaries’ section. Do not enter any portion of the Oklahoma Capital Gain Deduction in Part 2, “Beneficiaries’ Share of Income and Deductions.”
Questions people ask
Can an installment sale qualify?
Yes. Qualifying installment-sale gains included in federal taxable income for the current year are eligible if the property met the required holding period when sold. Report the current year’s taxable portion on line 2 and provide Federal Form 6252.
Can gains from a pass-through entity qualify?
Yes, if the property qualifies, you have been a member for the applicable uninterrupted three- or five-year period, and the entity held the asset for the applicable period. Gains or losses covered by the Pass-Through Entity Act election are reported on Form 561-PTE instead.
Does a capital loss carryover affect the deduction?
Yes. A capital loss carryover from qualified property reduces current-year gains from eligible property. Report the qualifying carryover on line 7, excluding amounts included in the income distribution deduction.
How do I determine the deduction and transfer it to Form 513-NR?
For each of Columns F and G, enter the smaller of lines 8 and 9 on line 10, but not less than zero. Transfer Column F to Form 513-NR, Federal Amount column, line 16, and Column G to Form 513-NR, Oklahoma Amount column, line 16.