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

2014 Form 561F - Page 3

Oklahoma Capital Gain Deduction for Trusts and Estates Filing Form 513

68 OS Sec 2358 and Rule 710:50-15-48

Specific Instructions

Complete this form using the Capital Gains and Losses included on Form 513, Column B “Total applicable

to Oklahoma” that have not been distributed to the beneficiary(ies). Do not include any portion of the capital

gain or loss included in the income distribution deduction on Form 513. The beneficiary will compute the capital gain

deduction on their own income tax return.

Line 1: List qualifying Oklahoma capital gains and losses from the Federal Form(s) 8949, Part II or from Federal

Schedule D, line 8a. Enclose a copy of Form(s) 1099-B if the qualifying Oklahoma capital gain or loss is reported on

Federal Schedule D, line 8a. In Column A, line A1, enter the description of the property as shown on Federal Form

8949, Column a or on Form 1099-B. On line A2 enter either the Oklahoma location/address of the real or tangible

personal property sold or the Federal Identification Number of the company, limited liability company or partnership

whose stock or ownership interest was sold. Complete Columns B through E using the information from Federal Form

8949, Columns b through g or from Form 1099-B. In Column B, enter the date the property was acquired. If you en-

tered “VARIOUS” or “INHERITED” on your federal form, enter the date you actually acquired the property. In Column

F enter the portion of the capital gain or loss included on Form 513, Column B, line 6 but not included in the income

distribution deduction on line 18. Do not include gains and losses reported on Form 561F lines 2 through 5.

Line 2: If Federal Form 6252 was used to report the installment method for gain on the sale of eligible property on

the Federal return, compute the capital gain deduction using the current year’s taxable portion of the installment

payment included on Form 513, Column B, line 6 but not included in the income distribution deduction on line 18.

Enclose Federal Form 6252. Capital gain from an installment sale is eligible for the Oklahoma capital gain deduction

provided the property was held for the appropriate holding period as of the date sold.

Line 3: Enter other qualifying Oklahoma capital gains and losses reported on Federal Schedule D, line 11 included

on Form 513, Column B, line 6 but not included in the income distribution deduction on line 18. Enclose the appli-

cable Federal form(s). If not shown on the Federal form, enclose a schedule identifying the type and location of the

property sold, the date of the sale, and the date the property was acquired.

Line 4: Enter qualifying Oklahoma net capital gain or loss from partnerships, S corporations, and other trusts or

estates included on Form 513, Column B, line 6 but not included in the income distribution deduction on line 18.

Complete the worksheet on page 2 and enclose a copy of the Federal Schedule K-1.

Line 5: Enter the qualifying Oklahoma net capital gain from the Federal Form 4797, reported on Federal Schedule

D included on Form 513, Column B, line 6 but not included in the income distribution deduction on line 18. Enclose

a copy of the Federal Form 4797. If reporting a gain/loss from a Federal Schedule K-1, complete the worksheet on

page 2 and enclose a copy of the Federal Schedule K-1.

Line 7: Enter the total qualifying Oklahoma capital loss carryover from the prior year’s return included on Form 513,

Column B, line 6 but not included in the income distribution deduction on line 18.

Line 9: The Oklahoma capital gain deduction may not exceed the portion of the net capital gain included on Form

513, Column B, line 6 but not included in the income distribution deduction on line 18. The term “net capital gain”

means the excess of the net long-term capital gain for the taxable year over the net short-term capital loss for such

year. If there is a net capital loss, enter zero.

Note: Do not enter any portion of the Oklahoma Capital Gain Deduction on Part 2 “Beneficiaries’ Share of Income

and Deductions”.

Draft

9/26/14

Form 561f Draft - Oklahoma Capital Gain Deduction For Trusts And Estates - 2014 Page 3