587-PTE: 2024 Form 587-PTE Oklahoma Pass-Through Entity Tax Supplement (2024)
Oklahoma · Oklahoma Tax Commission · Used for tax years 2024
Form 587-PTE is the 2024 Oklahoma Pass-Through Entity Tax Supplement for partnerships and S corporations that elected pass-through entity tax treatment. It reports members’ Oklahoma distributive income and capital gain deductions, calculates Oklahoma tax, and determines total Okl
Who files this form
Partnerships and S corporations that elected pass-through entity (PTE) treatment by filing Form 568, “Pass-Through Entity Election Form,” use Form 587-PTE to calculate Oklahoma tax.
- Part 1: Members who are individuals, trusts or estates, taxed at 4.75%.
- Part 2: Members who are corporations, S corporations or partnerships, taxed at 4%.
- Part 3: Total Oklahoma taxable income to carry to Form 514 or Form 512-S.
What you'll need
Have these forms and details available:
- The entity’s name as shown on its return and its Federal Employer Identification Number (FEIN).
- Each member’s FEIN or Social Security number.
- Form 514 or Form 512-S: Member income comes from Form 514, Part 5, lines 5, 7 and 9, or Form 512-S, Part 5, lines 5 and 7.
- Form 561-PTE, if claiming an Oklahoma capital gain deduction, and each member’s ownership percentage. The instructions say to provide Form 561-PTE.
- Form 587-PTE-SUP, if there are more than 15 members. Use as many supplemental forms as needed.
- Any net entity loss carried back or carried forward for Oklahoma income tax purposes.
- A tax accrual computation schedule, like the printed example, when tax credits are allowed. Submit the schedule with Form 587-PTE.
Common mistakes
- Leaving out additional members: If there are more than 15 members, use Form 587-PTE-SUP to enter the additional members.
- Capital gain deduction totals not matching: Part 1, Column C, line 17 plus Part 2, Column C, line 17 should equal Form 561-PTE, line 7.
- Claiming tax accrual on income covered by credits: The instructions do not allow Oklahoma tax accrual on income covered by a credit. Accrual is allowed only on income for which tax is actually paid.
- Omitting the tax accrual schedule when credits are allowed: Provide and submit a schedule like the printed example for the Part 1 and Part 2 accrued tax computations.
Questions people ask
What tax rate applies to each member?
Individuals, trusts and estates are included in Part 1 at 4.75%. Corporations, S corporations and partnerships are included in Part 2 at 4%.
How is the capital gain deduction allocated to members?
Multiply the Oklahoma capital gain deduction from Form 561-PTE, line 7 by each member’s ownership percentage. Enter the result in Column C.
How is the entity’s total Oklahoma tax calculated?
For each of Parts 1 and 2, multiply line 21 by the applicable tax rate and enter the result on line 23. The PTE’s tax is the total of Part 1, line 23 and Part 2, line 23.
Where do the totals go on Form 514 or Form 512-S?
Carry Part 1, line 23 to line 2b of Form 514 or Form 512-S. Carry Part 2, line 23 to line 2c of that return. Carry total Oklahoma taxable income from Part 3, line 3 to line 1 of that return.