Form 561f Draft - Oklahoma Capital Gain Deduction For Trusts And Estates

2014 Form 561F - Page 2

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Draft

Placeholder

Oklahoma Capital Gain Deduction

9/26/14

for Trusts and Estates Filing Form 513

68 Oklahoma Statutes (OS) Sec. 2358 and Rule 710:50-15-48

Worksheet -

(Enclose with Form 561F)

Name as Shown on Return

Federal Employer Identification Number

Form 561F Worksheet for (check one): Line 4

Line 5

Complete a separate worksheet for each piece of property sold. Enclose a copy of the Federal Schedule K-1.

Name of pass-through entity: _____________________________________________________________________

Description of property sold: ______________________________________________________________________

Location of property: ____________________________________________________________________________

Date acquired: ______________________________________ Date sold: __________________________________

Date(s) you acquired ownership in the pass-through entity: ______________________________________________

General Information

Taxpayers can deduct qualifying gains receiving capital gain treatment which are included in Federal taxable in-

come. “Qualifying gains receiving capital treatment” means the amount of net capital gains, as defined under Inter-

nal Revenue Code Section 1222(11). The qualifying gain must result from:

1. the sale of real or tangible personal property located within Oklahoma that has been owned for at least five

uninterrupted years prior to the date of the transaction that gave rise to the capital gain;

2. the sale of stock or an ownership interest in an Oklahoma company, limited liability company, or partnership

where such stock or ownership interest has been owned for at least three uninterrupted years (two for indi-

viduals) prior to the date of the transaction that gave rise to the capital gain; or

3. the sale of real property, tangible personal property or intangible personal property located within Oklahoma

as part of the sale of all or substantially all of the assets of an Oklahoma company, limited liability company,

or partnership where such property has been directly or indirectly owned by such entity or owned by the

owners of such entity, and used in or derived from such entity for a period or at least three uninterrupted

years (two for individuals) prior to the date of the transaction that gave rise to the capital gain.

An Oklahoma company, limited liability company or partnership is an entity whose primary headquarters has been

located in Oklahoma for at least three uninterrupted years prior to the date of sale.

A capital loss carryover from qualified property reduces the current year gains from eligible property.

Pass-through entities...

Capital gain from qualifying property, as described above, held by a pass-through entity is eligible for the Oklahoma

capital gain deduction, provided the person has been a member of the pass-through entity for an uninterrupted

period of the applicable three (two for individuals) or five years and the pass-through entity has held the asset for not

less than the applicable three (two for individuals) or five uninterrupted years prior to the date of the transaction that

created the capital gain. The type of asset sold, as shown in 1-3 above, determines whether the applicable number

of uninterrupted years is three (two for individuals) or five. The pass-through entity must provide supplemental infor-

mation to the person identifying the pass-through of qualifying capital gains.

Installment sales...

Qualifying gains included in Federal taxable income for the current year which are derived from installment sales are

eligible for exclusion provided the appropriate holding periods are met.

Form 561f Draft - Oklahoma Capital Gain Deduction For Trusts And Estates - 2014 Page 2

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