2025 Oklahoma partnership form 561-PTE Line 6

Kathi:

Thanks for the answer.  I did call Lacerte Support.  I uploaded the client file, and the support tech looked at the file.  But they couldn't really help me. They did mention that the Qualifying Oklahoma net capital gain might be reduced by the unused Section 179 recapture on assets sold. 

I went back and checked some of the assets that were sold and that may be what is happening.  For example, on an asset that was sold for $1,000, with a cost of $50,000 and Section 179 expense of $50,000, $1,000 is reported as other income on Line 6 of Part 3 of the Form 514, and $49,000 is subtracted from the Qualifying Oklahoma Capital Gain reported on Line 6 of the Form 561-PTE.  On another asset that was junked with no sales proceeds that had a cost of $65,000 and Section 179 expense of $65,000, $0 was reported on the Form 514 and $65,000 was subtracted from the Qualifying Oklahoma Capital Gain reported on the 561-PTE 

I was expecting the $1,000 reported on Line 6 of the Form 514 and am okay with it.

But I was not expecting the subtractions from the Qualifying Oklahoma Capital Gain since the $49,000 and the $65,000 unrecaptured Section 179 expense on these two assets did not have anything to do with the gain on the assets that qualified for the Oklahoma Capital Gain.

Does anybody know if this what is supposed to happen?  I have research Internet, OK statutes, and our tax service and cannot find anything on this treatment.

Thanks,

Larry Hull