Oklahoma Loss Distributed by an Electing Pass-Through Entity (PTE)

When a pass-through entity makes the Oklahoma PTE election, the entity is considered an Electing Pass-Through Entity.  Basically, this means that the income or losses covered by that election are generally removed from the owner's Oklahoma tax calculation, as they are now elected to be handled at the entity-level.

In the case of income covered by the election, that income would be subtracted from the Oklahoma return in order to prevent that income being taxed twice. 

In the case of a loss covered by the election, the loss would be added back on the Oklahoma return in order to prevent the taxpayer from receiving a personal state tax benefit from a loss that was already covered at the entity-level.  

How to make the entry for a Loss:

1. State
2. Oklahoma
3. Additions to Income 
4. Oklahoma Loss Distributed by an Electing PTE

Additional Information

Oklahoma Individual Tax Return Instructions