Oklahoma Form 586/587-PTE Information - 1065 - Tax Year 2022

  • Article Type:
  • QA
  • Last Modified:
  • 04/10/2023

Question

What are some common questions and answers regarding Oklahoma Form 586 and Form 587-PTE within a partnership return?

Environment

  • CCH® ProSystem fx® Tax
  • CCH Axcess™ Tax
  • Partnership – 1065
  • Oklahoma - OK
  • Worksheet View – WSV
  • Interview Forms - IVF

Answer

QuestionAnswer
-Form Name
  • Form 586 (Election/Revocation Form),
  • Form 587 PTE and
  • Form 587 PTE - SUP
-State Links
Election for PTE
-Is an Election Required?
  • Elections:
    • If the effective date is prior to the tax year begin date then Form 586 will not print but the return will calculate as an electing pass-through entity filing Form 587 PTE.
    • If the effective date is after the tax year begin date (subject to change in future years) then Form 586 will print to submit for approval to file as an electing pass-through entity. The return will file as a normal pass-through return.
       
  • Revocations:
    • If the effective date is prior to the tax year begin date then Form 586 will not print and the return will calculate as a standard pass-through return.
    • If the effective date is after the tax year end date then Form 586 will print and the return will calculate as an electing pass-through entity.
       
-Made when?
  • Deadline for the election will be the second month after the beginning of the taxable year.
-Good for?
  • If elected, will be PTE until they file a revocation.
-How do we make this election?
  • Election can be made on PTE-ST1, but if no date is entered on OK2, then the return will get diagnostics. The return can also make the election and enter dates on OK-2.
-Separate Form needed?
  • No.
-Option  to Opt-Out?
  • Do not select to be a PTE
Generation of State PTE Return
-How do we generate the form above?
  • Common State/City > State PTE Generation > State PTE Return Generation > Oklahoma - Generate State PTE return.
  • IV: PTE-ST1 > Box 206 (Oklahoma) mark X.
  • OK > Other Worksheet > Pass-Through Entity Election:
    • In line 1 - Pass-through entity election:
      • Code 1 is to Elect.
      • Code 2 is to Revoke.
    • In Line 3, a date needs to be present. 
  • IV: OK2 > Section Form 586 > lines 105 and 107/(106 and 108, if applicable)
-Is this a separate filing from the main form, part of the main form, or filed on it's own?
  • Form 586 is just the election/revocation form stating that they want to be PTE.
  • Form 587PTE/587PTE-SUP is the form where your tax gets calculated. Information from here flows to the main for 514.
Estimates
-Are there estimates for this form?
  • N/A
-How do we generate them?
  • N/A
    -Can you apply an overpayment from the current year form?
    • N/A
    Interest/Penalties
    -Do interest/penalties apply?
    • N/A
    -Is there an underpayment penalty?
    • N/A
    Additional PTE Information
    Common State > State PTE Generation worksheet >Grid 23  (Interview PTE-ST1, boxes 300-364)
    -Does this section apply to this state?
    • No.
    Additional Input Available
    - Does new input options under State and City Tax Refund flow to the state?
    • No, the new input (PTE Checkbox and State box) does not apply.
      • The amount flows to form 514, regardless if it came from a PTE, or not.
    - Does new input options under Taxes and Licenses flow to the state?
    • No, the new input (PTE Checkbox and State box) does not apply.
      • The amount flows to form 514, regardless if it came from a PTE, or not.
    - Does new input options under Rent/Royalty flow to the state?
    • No, the new input (PTE Checkbox and State box) does not apply.
      • The amount flows to form 514, regardless if it came from a PTE, or not.
    - Does the new input options under Farm flow to the state?
    • No, the new input (PTE Checkbox and State box) does not apply.
      • The amount flows to form 514, regardless if it came from a PTE, or not.

    Additional Information

    N/A

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