587-PTE: 2025 Form 587-PTE Oklahoma Pass-Through Entity Tax Supplement (2025)
Oklahoma · Oklahoma Tax Commission · Used for tax years 2025
Form 587-PTE is the 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 Oklahoma
Who files this form
Partnerships and S corporations that elected pass-through entity (PTE) status by filing Form 568 use the 2025 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
- Form 514 or Form 512-S: Use the member income amounts from Part 5 to complete Column B.
- Entity and member information: Have the entity’s name and FEIN, each member’s FEIN or SSN, and member ownership percentages for allocating any capital gain deduction.
- Form 561-PTE, if claiming an Oklahoma capital gain deduction: The text requires this form to support the deduction.
- Form 587-PTE-SUP, if there are more than 15 members: Use as many supplemental schedules as needed.
- An accrued tax computation schedule, when tax credits are allowed: Submit a schedule like the printed example with Form 587-PTE for the Part 1 and Part 2 accrued tax computations.
Common mistakes
- Leaving out additional members: The form notes that if there are more than 15 members, you must use Form 587-PTE-SUP. Use as many as needed.
- Overlooking the special accrued tax calculation for credits: Line 20 directs filers claiming nonrefundable credits to the instructions. Tax accrual is not allowed on income covered by a credit; it is allowed on income for which tax is actually paid.
- Not checking the capital gain deduction totals: Part 1, Column C, line 17 plus Part 2, Column C, line 17 should equal Form 561-PTE, line 7.
Questions people ask
Which income amounts go in Column B?
For each member, combine Form 514, Part 5, lines 5, 7, and 9, or Form 512-S, Part 5, lines 5 and 7.
How do I allocate the Oklahoma capital gain deduction to members?
Multiply the deduction on Form 561-PTE, line 7 by each member’s ownership percentage. Enter the result in Column C.
How is the PTE’s total Oklahoma tax calculated?
Multiply taxable income on line 21 by the applicable rate: 4.75% in Part 1 and 4% in Part 2. The PTE’s tax is the total of Part 1, line 23 and Part 2, line 23.
Where do the tax and taxable income totals go?
Carry Part 1, line 23 to Form 514 or Form 512-S, line 2b. Carry Part 2, line 23 to the same return’s line 2c. Carry total Oklahoma taxable income from Part 3, line 3 to Form 514 or Form 512-S, line 1.