Oklahoma Administrative Code
Title 710 - Oklahoma Tax Commission
Chapter 50 - Income
Subchapter 19 - Oklahoma Taxable Income for Partnerships
Section 710:50-19-1 - Partnership return
Universal Citation: OK Admin Code 710:50-19-1
Current through Vol. 42, No. 13, March 17, 2025
(a) General provisions. The Oklahoma distributive share of partnership income shall be the same portion of that reported for Federal Income Tax purposes. OTC Form 514 is used to report income. [See: 68 O.S. §§2358, 2362, 2363]
(1)
Oklahoma source income or
loss. When a partnership has source income or loss then that partnership
must file a return showing the income or loss applicable to Oklahoma. The
partnership shall also furnish a detailed schedule stating the amount of income
distributable to each partner from Oklahoma sources.
(2)
Duty to file and report;
determination of shares. All resident partners must file individual
income tax returns with Oklahoma if they are required to file individual
Federal Income Tax Returns. All nonresident partners that have gross income of
$1,000.00 must file an Oklahoma Return even though their net may actually be a
loss. The partnership income for Oklahoma may be apportioned using the three
factor formula unless its operations are from real and tangible personal
property, such as rents, oil and mining production or royalties, and gains or
losses from sales of such property; then the income or loss shall be allocated
in accordance with the situs of such property. The partner's distributive share
of Oklahoma income or loss shall be the same proportion to the partner's
distributive share of income or loss shown on the Federal Partnership Return.
(3)
No credit for income
taxes paid other jurisdictions. Neither residents nor nonresidents are
allowed a credit for income taxes paid to other jurisdictions on partnership
income.
(4)
Composite
returns. For tax years beginning on or after January 1, 2013, Oklahoma
will allow partnerships with two or more partners to file composite returns for
nonresident partners as set forth in (A) through (D) of this paragraph.
(A)
Individual partners and trust
partners. Compute each nonresident individual or trust partner's share
of Oklahoma distributive income and income tax as follows:
(i) Calculate the Oklahoma distributive share
of each nonresident individual and trust partner's income as if all of the
partnership income was earned in Oklahoma. In determining taxable income of
individual partners filing a composite return, no deductions for the standard
deduction, personal exemptions, federal income tax paid, or dependents is
permitted.
(ii) Using the Oklahoma
individual income tax rates for the applicable tax year, compute a base
tax for each partner using the highest marginal tax rate, based on the
taxable income from (i) of this subparagraph.
(iii) Calculate the actual Oklahoma
distributive share of income of each partner.
(iv) The base tax determined from (ii) of
this subparagraph is to be prorated to determine the Oklahoma income tax of
each partner. Divide each partner's actual Oklahoma distributive share as
determined in (iii) of this subparagraph, by each partner's distributive income
from all sources as determined by (i) of this subparagraph. Multiply this
percentage times the base tax to calculate the actual Oklahoma income tax of
each partner. Nothing in this section shall be construed to allow for more than
one hundred percent (100%) of a nonresident partner's income to be taxed.
(B)
Corporate
partners, S Corporation partners and Partnership partners. Compute each
nonresident corporate, S corp or partnership partner's share of Oklahoma
distributive income, using the partner's share of Oklahoma distributive income
and the Oklahoma corporate income tax rates, to compute each partner's Oklahoma
tax.
(C)
Form. The
income and tax of all partners included in the composite return must be
combined on Oklahoma Tax Commission Form 514.
(D)
Schedule to be provided.
Oklahoma Tax Commission Form 514 PT must be enclosed with the Form 514 to show
the computation of each nonresident partner's Oklahoma distributive income and
Oklahoma tax. The schedule of nonresident partner's information may be provided
on magnetic media, electronically, or in another format which meets Tax
Commission guidelines.
(b) When electronic filing is required.
(1)
Schedule
K-1. For tax years beginning on or after December 31, 2004, partnerships
with more than one hundred (100) partners are required to electronically file
their Schedule K-1's with the Oklahoma Tax Commission. The format for filing
electronically will be in either a spreadsheet format, such as Lotus 1-2-3 or
Excel; or a database format, such as DBF or Access. A partnership is deemed to
have "more than one hundred (100) partners" if, over the course of the
partnership's tax year, the partnership had more than one hundred (100)
partners at any time.
(2)
Oklahoma partnership income tax return. For tax years beginning on
or after January 1, 2020, all Oklahoma partnership income tax returns must be
filed electronically in the format prescribed by the Commission.
(c) Waiver of electronic filing requirement for hardship. Partnerships may also obtain a waiver from the electronic filing requirement if the partnership demonstrates that a hardship would result if it were required to file electronically.
Amended at 20 Ok Reg 2165, eff 6-26-03 ; Amended at 21 Ok Reg 2571, eff 6-25-04 ; Amended at 22 Ok Reg 1532, eff 6-11-05 ; Amended at 24 Ok Reg 2359, eff 6-25-07 ; Amended at 30 Ok Reg 1859, eff 7-11-13
Disclaimer: These regulations may not be the most recent version. Oklahoma may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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