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For taxable year ending in
2014
Ohio IT 4708
Composite
Income Tax Return
Instructions for
Certain Investors in a
Pass-Through Entity
Rev. 1/15
Department of
hio Taxation
tax. hio.gov
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IT 4708
Rev. 1/15
2014 Ohio Form IT 4708 year end. For the fi scal year beginning Feb. 1, 2013 and ending
Jan. 31, 2014, the pass-through entity elects to fi le the year 2014
General Instructions Ohio form IT 4708 (this return would be due April 15, 2015, not April
15, 2014). For the fi scal year beginning Feb. 1, 2014 and ending
Note:Please put tax return in the proper numerical order and place Jan. 31, 2015, the entity elects to fi le the year 2014 Ohio form IT
all attachments after the return. 1140. This return would be due May 15, 2015. For the fi scal year
All Ohio tax forms and schedules referred to in this instruction beginning Feb. 1, 2015 and ending Jan. 31, 2016, the entity elects
booklet may be obtained from our website at tax.ohio.gov. to fi le the year 2016 Ohio form IT 4708. This return would be due
April 15, 2017. With this fact pattern the pass-through entity will not
Purpose of Form file any 2015 Ohio pass-through entity return, but the pass-through
The Ohio form IT 4708 is a composite return completed and filed entity will have reported all periods of income.
by the pass-through entity on behalf of one or more of the entity’s
nonresident noncorporate investors for whom income tax has not Note: For taxable years beginning on or after Jan. 1, 2013,
been previously withheld. an individual taxpayer filing the IT 1040 is allowed a deduction
amounting to 75% of the taxpayer’s Ohio small business income
Who Must File of up to $250,000. The deduction cannot exceed $93,750 for each
Ohio Revised Code section (R.C.) 5747.08(D) allows each pass- spouse fi ling separately or $187,500 for all other taxpayers. Ohio
through entity (defi ned below) to elect to file a composite return small business investor income means the portion of a taxpayer’s
(Ohio form IT 4708) on behalf of one or more of the entity’s direct adjusted gross income that is business income reduced by
and indirect investors other than C corporations. Note: Both resident deductions from business income and apportioned or allocated to
and nonresident individuals, other pass-through entities, estates Ohio under R.C. 5747.21 or 5747.22 to the extent not otherwise
and trusts can be included in a composite return for each pass- deducted or excluded in computing federal or Ohio adjusted gross
through entity in which they invest. C corporations that are direct income for the taxable year. The deduction will be available on
or indirect investors in the pass-through entity cannot participate Schedule A of the IT 1040. See R.C. 5747.01(A)(31), 5747.21,
in fi ling an Ohio form IT 4708. See R.C. 5747.08(D)(1)(b)(ii). 5747.22.
If a nonresident individual’s, estate’s or trust’s only source of Ability of Nonresident Pass-Through Entity Investors To File
Ohio income is a distributive share of income from an investment IT 1040
in one or more pass-through entities doing business in Ohio, the For taxable years beginning on or after Jan. 1, 2013, all nonresident
nonresident can fulfi ll the nonresident’s Ohio individual income investors in a pass-through entity on whose behalf the entity files
tax fi ling requirements under R.C. 5747.02 by being included in a an Ohio composite return (IT 4708) and pays tax may now fi le an
composite return (Ohio form IT 4708) for each pass-through entity individual return (IT 1040) and claim the refundable credit for taxes
in which the nonresident invests. the entity paid on the investor’s behalf. These include nonresident
investors with no other Ohio-sourced income who currently are not
A nonresident partner having other Ohio-sourced income may required or permitted to file an individual return if the entity files
participate in the fi ling of Ohio form(s) IT 4708, but that nonresident the composite. Note that in light of this change, the department
partner must also fi le an Ohio income tax return (Ohio form IT 1040 has rescinded the Business Tax Division alert issued on Aug. 10,
for individuals; Ohio form IT 1041 for estates and trusts) to report 2011, which formerly precluded nonresident individual investors
all other Ohio-sourced income that is not reported on Ohio form(s) participating in a composite and having have no other Ohio-sourced
IT 4708. “Other Ohio-sourced income” includes gain apportioned income from fi ling an Ohio form IT 1040 return. See R.C. 5747.08.
to Ohio under R.C. 5747.212.
No Carryforward Deductions
The election provided in division (D) of R.C. 5747.08 applies only Ohio law does not allow for a deduction for net operating loss
to the taxable year for which the election is made. Unless the tax carryforwards or for capital loss carryforwards. Investors who want
commissioner provides otherwise, this election, once made, is to deduct such carryforwards should file Ohio form IT 1040 and
binding and irrevocable for the taxable year for which the election should not participate in the fi ling of Ohio form IT 4708. Note: The
is made. Nothing in this division provides for any deduction or credit pass-through entity may be required to fi le Ohio form IT 1140 if such
that would not be allowable if a pass-through entity investor were to nonresident pass-through entity investors fi le Ohio form IT 4708.
file the annual Ohio income tax return, Ohio form IT 1040.
Defi nition of Pass-Through Entity
Which Should I Use: Ohio Form IT 1140 or Ohio Form IT 4708? A “pass-through entity” is defi ned as any of the following:
Qualifying pass-through entities whose equity investors are limited
to nonresident individuals, nonresident estates and nonresident • a corporation or limited liability company that has made an election
trusts can fi le either Ohio form IT 1140 or IT 4708. All other qualifying under Subchapter S of Subtitle A of the Internal Revenue Code
pass-through entities may fi le Ohio form IT 1140 or may choose to (I.R.C.) for its taxable year; OR
file Ohio form IT 4708.
• a partnership, limited partnership, limited liability company, or
Ohio form IT 1140 is based upon thefirst day of the pass-through any other person, other than an individual, trust or estate, if
entity’s calendar or fi scal year; Ohio form IT 4708 is based upon the partnership, limited partnership, limited liability company or
the last day of the pass-through entity’s calendar or fi scal year. A other such person is not classifi ed for federal tax purposes as an
pass-through entity that changes forms from year to year must make association taxed as a C corporation.
sure that (i) all periods of income are reported and (ii) all related tax
is timely and fully paid. Investor Information
This return must include either (i) Schedule VI, (ii) a copy of pages 1 and
Example: A pass-through entity whose equity investors are 2 of the K-1 for each investor whether or not the investor participates
composed solely of nonresident individuals has a Jan. 31 fiscal in fi ling this composite return (do not include any K-1 attachments,
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IT 4708
Rev. 1/15
schedules or statements), or (iii) a list of all investors and their Social per month up to a maximum of $500, or 5% per month up to a
Security numbers (or federal employer identifi cation numbers). For maximum of 50% of the tax.
detailed instructions, see “Schedule VI – Investor Information.”
If the pass-through entity fails to pay the full amount of tax by the
Taxable Year due date, the law provides for a failure-to-pay penalty, which is up
A pass-through entity’s taxable year for Ohio income tax purposes to a maximum of double the interest charged. The penalty will not
is the same as its taxable year for federal income tax purposes. If apply if (i) the pass-through entity obtained a federal extension of
an entity’s taxable year is changed for federal income tax purposes, time to fi le (ii) the pass-through entity’s total payments made by the
the taxable year for purposes of this return is changed accordingly. due date without extension equal or exceed 90% of the total Ohio
tax due and (iii) by the extended due date the pass-through entity
When To File pays the balance of the tax due. To make an extension payment,
please use the 2014 Ohio form IT 4708P.
Return Due Dates
If the due date falls on a Saturday, Sunday or legal holiday, the Interest Penalty on Underpayment of Estimated Tax
pass-through entity can fi le on the next day that is not a Saturday, The pass-through entity will owe an interest penalty if the amount
Sunday, or legal holiday. on line 12 is greater than $500 and (ii) withholdings and refundable
credits are less than both of the following:
Calendar year pass-through entities – April 15th of the immediately
following calendar year. • 90% of your 2014 Ohio tax (Ohio form IT 4708, line 12); AND
Fiscal year pass-through entities – April 15th of the calendar year
• 100% of your 2013 Ohio tax (Ohio form IT 4708, line 12). If the
immediately following the calendar year in which the fi scal year ends.
pass-through entity owes an interest penalty, the pass-through
Example: A pass-through entity having a Jan. 31, 2014 fi scal year entity must complete Ohio form IT/SD 2210 and enter the interest
end and electing to fi le this return must file the return by April 15, penalty on line 13 of Ohio form IT 4708.
2015.
Preparer’s Signature
Extensions to File The Ohio Department of Taxation follows IRS Service Notice 2004
If the pass-through entity qualifi es for and receives a federal 54, which provides for alternative preparer signature procedures
extension of time to file, then the pass-through entity automatically for IRS income tax paper returns that paid practitioners prepare
has the same extension of time to fi le the Ohio return. However, the on behalf of their clients. Except as set forth below, paid preparers
pass-through entity must include a copy of the federal extension to must follow those same procedures with respect to the following
the Ohio return. If the pass-through entity electronically obtained Ohio paper returns: individual income tax, school district income tax,
the federal extension, then, when fi ling the Ohio form IT 4708, the withholding tax (employer and pass-through entity) and corporation
pass-through entity must provide the federal confi rmation number franchise tax. See R.C. 5703.262(B) and 5747.08(F).
for the extension.
Exception: The paid preparer should print (rather than write) his/
Caution: An extension of time to file does not give the pass-through her name on the form if the taxpayer checks “Yes” to the question,
entity an extension of time to pay. Make Ohio extension payments “Do you authorize your preparer to contact us regarding this return?”
on the 2014 Ohio form IT 4708P.
Method of Accounting
Payment Options A pass-through entity’s method of accounting for this return must
Payments may be remitted by personal check or money order with be the same as its method of accounting for federal income tax
the IT 4708P payment voucher. purposes. In the absence of any method of accounting for federal
income tax purposes, income must be computed under such method
Interest on Underpayments and Overpayments as in the opinion of the tax commissioner clearly refl ects income. If
If a pass-through entity fails to pay the tax by the due date, interest a pass-through entity’s method of accounting is changed for federal
accrues on the unpaid tax. Interest on tax due is charged in addition income tax purposes, its method of accounting for purposes of this
to any penalties that may be incurred for late fi ling or failure to file tax must be changed accordingly.
timely. The period of underpayment runs from the date the tax was
required to be paid to the date on which such payment is made. Amended Returns
If any of the facts, fi gures, computations or attachments required in
Interest is allowed and paid upon any overpayment in excess of a pass-through entity’s composite income tax return must be altered
one dollar in respect of the tax imposed under R.C. 5747.02 from as the result of an adjustment to the pass-through entity’s federal
the date of the overpayment until the date of the refund of the income tax return, and whether the adjustment is initiated either by
overpayment, except that if any overpayment is refunded within 90 the pass-through entity or by the IRS, and if such alteration affects
days after the due date of the annual return or within 90 days after the pass-through entity’s tax liability, the pass-through entity must
the return was fi led, whichever is later, no interest shall be allowed file an amended return. Upon completing an amended return,
on such overpayment. check the “amended return” box on page 1 of the return.
During calendar year 2014 and calendar year 2015, interest accrues The pass-through entity must file the amended return not later
on underpayments and overpayments at the rate of 3% per annum, than 60 days after either (i) the adjustment has been agreed to or
respectively. finally determined for federal income tax purposes or (ii) any federal
income tax defi ciency or refund, or the abatement or credit resulting
Penalties therefrom, has been assessed or paid whichever occurs first.
If the pass-through entity fails to file the Ohio composite income
tax return by the due date (or extended federal due date), the law Caution: The IRS informs us of all changes it makes to federal
provides for a failure to fi le penalty, which is the greater of $50 income tax returns. To avoid penalties, be sure the pass-through
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IT 4708
Rev. 1/15
entity files its Ohio amended return within 60 days of the final after nonrefundable credits will be more than $500. Interest penalty
determination of the federal change. applies to estimated payments not timely made.
(1) In the case of an underpayment, the amended return must be Due Dates for Estimated Tax Payments
accompanied by payment of an additional tax and interest due If any fi ling due date set forth below falls on a weekend or on a
and is a return subject to assessment under R.C. 5747.13 for the holiday, then the due date becomes the fi rst business day thereafter.
purpose of assessing any additional tax due under this division. The
amended return must not reopen those facts, fi gures, computations Calendar year pass-through entities – April 15th, June 15th and
or attachments from a previously filed return no longer subject Sept. 15th of the calendar year and Jan. 15th of the immediately
to assessment if those facts, figures and computations are not following calendar year.
affected, either directly or indirectly, by the IRS adjustment to the
Fiscal year pass-through entities – April 15th, June 15th, and Sept.
pass-through entity’s federal income tax return.
15th of the calendar year in which the fi scal year of the pass-through
(2) In the case of an overpayment, the pass-through entity may entity ends and Jan. 15th of the immediately following calendar year.
file an amended return within the 60-day period prescribed for
Example: A pass-through entity has a Nov. 30 fi scal year end. For
filing the amended return even if it is filed beyond the period
the fi scal year ending Nov. 30, 2015, the estimates would be due on
prescribed in division (B) of R.C. 5747.11 and if the amended
April 15, 2015; June 15, 2015; Sept. 15, 2015; and Jan. 15, 2016.
return otherwise conforms to the requirements of that section.
These estimates would be based upon either (i) the tax due, net of
An amended return fi led under this section may claim refund
credits, for the fi scal year ending Nov. 30, 2014, or (ii) 90% of the
of overpayments resulting from alterations to only those facts,
tax due on income (or annualized income), net of credits for the
figures, computations or attachments required in the pass-
fiscal year ending Nov. 30, 2015.
through entity’s annual return that are affected, either directly
or indirectly, by the IRS adjustment to the pass-through entity’s Line Instructions
federal income tax return unless the amended return is also
filed within the time prescribed in division (B) of R.C. 5747.11. Schedule I – Taxable Income, Tax,
Otherwise, the amended return shall not reopen those facts, Payments and Net Amount Due Calculations
figures, computations or attachments that are not affected,
either directly or indirectly, by the IRS adjustment to the pass- Line 4 – Net Allocable Nonbusiness Income (Loss)
through entity’s federal return (IRS form 1065 or 1120S). Everywhere
Generally, income is apportionable business income. Nonbusiness
If an investor participates in the filing of this form, then for Ohio form income, if any, is allocable only as provided by R.C. 5747.20
IT 1140 purposes for the taxable year the investor is not a “qualifying through 5747.231. If you show income on this line, please provide
investor.” So, for that taxable year the pass-through entity is not subject (i) a schedule indicating the type and the amount for each item of
to the withholding tax or the entity tax (Ohio form IT 1140) with respect to income, (ii) a statement explaining why the income is not business
the distributive share of income passing through from the pass-through income and (iii) a list of states, if any, for which the pass-through
entity to each investor participating in the fi ling of this form. entity treats such income as business income.
Assessments Each nonresident taxpayer who sells, exchanges or otherwise
The tax commissioner may issue an assessment against the pass- disposes of his/her direct or indirect interest in a closely held
through entity for any defi ciency within four years after the later of business having property, payroll and/or sales in Ohio must situs to
the fi nal date the return subject to assessment was required to be Ohio a portion of the gain (loss) recognized from that sale, exchange
filed or the date the return was filed. However, both the assessment or other disposition. The nonresident taxpayer shall apportion the
statute of limitations and the refund statute of limitations may be income using the average of the entity’s apportionment factors
extended for an agreed-upon period if both the pass-through entity for the current and two preceding taxable years. For additional
and the tax commissioner consent in writing to the extension. information see R.C. 5747.212.
An amended Ohio form IT 4708, which the pass-through entity files Line 8 – Net Nonbusiness Income (Loss) Allocated to Ohio
as a result of an adjustment to the federal tax return, form 1065 or Nonbusiness income is allocable to Ohio only as provided by
1120S, is deemed a report subject to assessment. However, the R.C. 5747.20 through 5747.231. Provide a schedule indicating
amended return does not reopen those facts, fi gures, computations the amount allocable to Ohio and the calculations for the gain
or attachments from a previously fi led return no longer subject to (loss) apportioned to Ohio per R.C. 5747.212. The calculations
assessment to the extent that those facts, fi gure and computations must include the three-year average apportionment factor and the
are not affected, either directly or indirectly, by the IRS adjustment percentage of ownership for all investors that directly or indirectly
to the entity’s federal income tax return. own at any time during the three-year period ending on the last
If the taxpayer disagrees with an assessment, the taxpayer may day of the taxpayer’s taxable year at least 20% of the equity voting
object to the assessment by filing Ohio form PR, Petition for rights of an R.C. section 5747.212 entity.
Reassessment. Form PR applies only to assessments (not to Line 11 – Nonrefundable Business Credits and Grant
proposed corrections) issued by the Ohio Department of Taxation. Nonrefundable business credits claimed on this composite return are
If a petition for reassessment has been properly filed, the tax limited to the proportionate share amounts for those investors included
commissioner shall proceed in accordance with R.C. 5703.60. in this composite return. To claim the nonrefundable business credit,
Estimated Tax Payments for Next Year use Schedule E, which is not contained in this booklet.
The pass-through entity must make estimated tax payments on the Attach a copy of the Schedule E business credit summary
year 2015 Ohio form IT 4708ES for the entity’s taxable year ending worksheet, and enter the amount of the credit on Ohio form IT 4708,
in year 2015 if the year 2015 Ohio composite annual income tax Schedule I, line 11.
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Note: The Ohio political contribution credit is a nonrefundable for Pass-through Entities and Trusts) to make estimated payments
business credit available to the pass-through entity. in connection with the pass-through entity withholding tax and/or
the entity tax, the pass-through entity can elect to apply some or
Manufacturing Equipment Grant all of those form IT 1140ES payments to satisfy the tax due on this
For taxable years ending on or after July 1, 2005, the R.C. 5747.31 form, Ohio form IT 4708. If the pass-through entity so elects, please
manufacturer’s credit for purchases of new manufacturing machinery indicate on Schedule I, line 15 the total amount to be transferred
and equipment (the 7.5%–13.5% manufacturer’s credit) converts to from Ohio forms IT 1140ES and IT 1140P to Ohio form IT 4708 for
a grant administered by the Ohio Development Services Agency. To the same taxable year.
claim the grant, the pass-through entity must complete (and attach
to Ohio form IT 4708) the grant request form. If the pass-through entity will be lingfiboth Ohio forms IT 4708 and IT
1140 for the same taxable year, please attach to Ohio form IT 4708
The manufacturer’s grant applies to taxpayers who purchased, a schedule setting forth (i) the dates of the Ohio forms IT 1140ES
and to taxpayers that have an interest in pass-through entities and IT 1140P payments transferred to this return (ii) and the amount
that purchased, new manufacturing machinery and equipment of each payment transferred to Ohio form IT 4708.
during the qualifying purchase period July 1, 1995, to June 30,
2005, provided that the taxpayer or the pass-through entity Show on this line the sum of any payments made with previously
installs the new manufacturing machinery and equipment in filed return(s) for this taxable year and attach a schedule showing
Ohio no later than June 30, 2006. The grant is claimed as a any payments previously made.
direct reduction to the taxpayer’s Ohio income tax liability and,
like the manufacturer’s credit, is nonrefundable. The concepts, Line 16 – Ohio Form IT 4708 Payments Transferred to Ohio
defi nitions and computations that apply to the credit also apply Form IT 1140
to the grant. The pass-through entity can also elect to transfer Ohio forms IT
4708ES and IT 4708P payments (“Ohio Composite Annual Return
The grant applies not only to the qualifying new manufacturing Estimated Tax Payments”) to Ohio form IT 1140 (“Tax Return for
machinery and equipment purchased during the period Jan. 1, 2005, Pass-Through Entities and Trusts”) for the same taxable year. To the
to June 30, 2005, but also to qualifying equipment purchased in 2004 extent that the pass-through entity elects to make such transfers,
and/or purchased in earlier years. Thus, the grant applies to (i) the please indicate on this 2014 Ohio form IT 4708, Schedule I, line 16
1/7 amounts from 2005 qualifying purchases, (ii) the 1/7 amounts the total amount to be transferred from the Ohio forms IT 4708ES
from pre-2005 qualifying purchases for which the taxpayer claimed and IT 4708P payments to Ohio form IT 1140 for the same taxable
the manufacturer’s credit on prior income tax returns, and (iii) any year.
credit carryforward amounts from the previous three taxable years.
Reduce the amount on this line by any refunds previously claimed
The grant applies only if both of the following conditions are (even if not yet received) and attach a schedule showing any refunds
met: previously claimed.
(1) The taxpayer files with this return a “grant request” form Line 18 – Amount of 2013 Overpayment Credited to 2014
with the taxpayer’s 2014 Ohio income tax return; AND Enter on Schedule I, line 18 the amount of the 2013 overpayment
that was credited to the 2014 tax liability (see line 22 on the 2013
(2) The purchaser of the qualifying new manufacturing Ohio form IT 4708).
machinery and equipment fi led a “notice of intent” with
the Ohio Development Services Agency by the date of the Line 19 – Refundable Business Credits
taxpayer’s timely fi led tax return, including extensions, Refundable business credits claimed on this composite return
for the taxpayer’s taxable year that included Sept. 30, are limited to the proportionate share amounts for those investors
2005. However, if the taxpayer previously fi led the notice of included in this composite return. Enter the amount from Schedule
intent to claim the credit, that fi ling also constitutes a notice V, line 59.
of the intent to claim the grant.
Line 25 – Interest and Penalty Due on Late-Paid and/or Late-
Note: The requested grant now only consists of unused carryforward Filed Return
amounts that the taxpayer could have claimed as a credit/grant Enter any interest and penalty as explained in the general
on the taxpayer’s 2011 income tax return. Each 1/7 amount that instructions.
could not be used in the year in which it otherwise could have been
claimed (because the taxpayer did not have suffi cient tax to use the Line 26 – Total Amount Due
amount) can be carried forward for three years. Remit using any of the payment options as explained in the general
instructions.
Line 13 – Interest Penalty on Underpayment of
Estimated Tax Schedule II – Income and Adjustments
Enter any interest penalty on underpayment of estimated tax as
explained in the general instructions. Note: Show on Schedule II the income and adjustments only for
those investors who are participating in the fi ling of this return.
Line 14 – Ohio Form IT 4708 Estimated Tax Payments
Enter on line 14 the total amount of the 2014 composite annual Line 28 – Related Member Adjustments
return estimated tax payments paid with Ohio forms IT 4708ES “Related member” is defi ned in R.C. 5733.042(A)(6) but is modified
and IT 4708P. by R.C. 5733.40(P). For purposes of the line 28 adjustment, a
related member is any business entity or person directly or indirectly
Line 15 – Ohio Form IT 1140 Payments Transferred to This Form related to the taxpayer if the direct and indirect ownership interests
If for the taxable year the pass-through entity has used Ohio form IT exceed 40%.
1140ES (Estimated Ohio Withholding Tax and Entity Tax Payment
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Include on this line all compensation paid to or for family member Line 36 – Pass-through Entity Add-back
employees if the pass-through entity owner is a member of the Add any Ohio form IT 1140 or IT 4708 taxes shown on federal K-1s
family directly, indirectly and/or by attribution owns at least 40% of that this pass-through entity received from other entities to the
the pass-through entity. See R.C. 5733.40. Do not show on line 30 extent the taxes were deducted in arriving at your ordinary income.
any amount you show on line 28.
Line 39 – Losses From Sale or Other Disposition of Ohio
Line 29 and 30 – Guaranteed Payments and Compensation Public Obligations
Add-Back See R.C. 5709.76, 5747.01(A)(9) and 5747.01(S)(7).
Guaranteed payments and compensation paid to an investor who
holds at least a 20% direct or indirect interest in the profi ts or capital Schedule III – Deductions
of the qualifying entity during the qualifying entity’s taxable year shall
be considered a distributive share of income of the qualifying entity. The allowable deductions in arriving at federal adjusted gross
Such guaranteed payments and compensation shall be added back income refl ected on lines 41-48 are the combined amounts from
as business income. the federal K-1s for the taxable year for only those investors that
participate in the fi ling of Ohio form IT 4708. Do not include any
Reciprocity agreements do not apply to those nonresidents directly deductions that have been already used to reduce any income
or indirectly owning at least 20% of the stock or other equity of the items set forth in Schedule II.
pass-through entity. That is, pass-through entities cannot use the
reciprocity agreements in order to avoid adding back guaranteed Line 41 – I.R.C. 179, Expense Not Otherwise Deducted
payments and compensation that the pass-through entities pay to If you show an amount on this line, attach the following forms:
such nonresidents. See R.C. 5733.40(A)(7).
• Page 1 of federal form 1065 or page 1 of federal form 1120S.
Line 34 – Depreciation Adjustments
R.C. 5701.11, 5733.40(A)(5), 5747.01(S)(14) and 5747.01(A)(20) • Federal form 4562, Depreciation and Amortization.
state that, in determining Ohio taxable income, a taxpayer that for
federal income tax purposes claims I.R.C. 168(k) bonus depreciation • Federal form 8825, Rental Real Estate Income and Expenses of
must add back 2/3, 5/6 or 6/6 of that bonus depreciation that the a Partnership or an S Corporation, if applicable.
taxpayer claimed for the taxable year based upon the I.R.C. Line 42 – Deduct Depreciation and Miscellaneous Federal
These “add-back and subsequent deduction” laws also cover (i) Income Tax Adjustments
depreciable assets acquired by the taxpayer’s disregarded entities Enter on this line 1/2, 1/5 or 1/6 of the depreciation expense added
and (ii) depreciable assets that are owned by pass-through entities back on each of the previous years’ returns (see instructions for
in which the taxpayer directly or indirectly owns at least 5% (see line 34).
R.C. 5747.01(A)(20)(a)). Miscellaneous Federal Income Tax Adjustments
In addition, if the taxpayer is an equity investor in a pass-through Because of a recent amendment to R.C. 5701.11 there are no
entity that has claimed I.R.C. 168(k) bonus depreciation, and miscellaneous federal tax adjustments on this return. See Senate
if, because of the federal passive activity loss limitation rules or Bill 28, 130th General Assembly. However, you must make all other
because of the federal at-risk limitation rules, the taxpayer is unable required adjustments for this line.
to fully deduct a loss passing through from another pass-through Line 43 – Net Federal Interest and Dividends Exempt from
entity to the taxpayer, then to the extent that the taxpayer does not State Taxation
recognize the loss, the taxpayer can defer making the “2/3, 5/6 or For purposes of this adjustment, “net federal interest” is defi ned as
6/6 add-back” until the taxable year or years for which the taxpayer federal interest less any expenses that were claimed on the federal
deducts the pass-through entity loss and receives a federal tax tax return but that would not have been allowed under I.R.C. 265
benefi t from the bonus depreciation amount claimed by the other if such interest were exempt from federal income tax. The Jan. 9,
pass-through entity. Of course, the taxpayer cannot begin claiming 1992, Ohio Department of Taxation information release lists federal
the related subsequent years deduction until the fi rst taxable year obligations, the interest from which is deductible.
immediately following the taxable year for which the taxpayer makes
the 2/3, 5/6 or 6/6 add-back. Interest income generated from repurchase agreements secured
by federal obligations is not interest from federal obligations and
For detailed information and examples regarding this adjustment, therefore is not deductible. See Nebraska Department of Revenue
see R.C. 5747.01(A)(20) as amended by the 129th General v. Lowenstein 513 U.S. 123, 115 S. Ct. 557, 1994 US Lexis 8802.
Assembly in HB 365 and information releases 2002-02 and 2002 Also see Associated Estates Corp., AEC Management Co. and
01 regarding Ohio bonus depreciation adjustments available on our Hirsch Electric Co. v. Limbach, BTA Case Nos. 87-H-743, 87-G-774
Web site at tax.ohio.gov. These releases were originally posted and 87-D-756, May 11, 1990.
on July 31, 2002 and Nov. 7, 2002.
Line 44 – Other Separately Stated K-1 Amounts and
Important: S corporation shareholders cannot claim this deduction Individual Development Accounts
with respect to depreciable property for which the add-back occurred The amount contributed to other separately stated K-1 amounts and
while the corporation was a C corporation. See R.C. 5733.40(A)(5) an individual development account that are allowable as deductions
and 5747.01(A)(21)(a). (if not otherwise deducted above) in arriving at federal adjusted
Line 35 – Other Income (Loss) gross income on the federal income tax return may be deducted from
Include on this line any item of income or deduction if not otherwise total income. Examples include the domestic production activities
reported and if that item affects an individual’s computation of federal deduction and the self-employed health insurance deduction.
adjusted gross income.
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Note: Income taxes that the pass-through entity pays on behalf of its others, eight times its net annual rental rate) within Ohio that is
investors and charitable contributions are not allowable deductions used exclusively during the taxable year for qualifi ed research.
on this form.
Do not include in Within Ohio, but do include in Total Everywhere, the
Lines 47 and 48 – Ohio Public Obligations and Ohio original cost of qualifying improvements to land or tangible personal
Purchase Obligations property in an enterprise zone for which the taxpayer holds a Tax
See R.C. 5747.01(A)(8), 5747.01(A)(9), 5747.01(S)(6), 5747.01(S) Incentive Qualifi cation Certifi cate issued by the Ohio Development
(7) and 5709.76. Services Agency.
Schedule IV – Apportionment Formula Line 50a – Property Owned Within Ohio
Enter the average value of the pass-through entity’s real property
Instructions and a worksheet for a fi nancial institution pass-through and tangible personal property, including leasehold improvements,
entity are available at the end of this booklet. owned and used in the trade or business in Ohio during the taxable
year.
Note: When calculating the apportionment ratio, a pass-through
entity that has invested in another pass-through entity must apply Line 50a – Property Owned – Total Everywhere
the “aggregate” (conduit) theory of taxation. That is, the character Enter the average value of all the pass-through entity’s real property
of all income and deductions (and adjustments to income and and tangible personal property, including leasehold improvements,
deductions) realized by a pass-through entity in which the pass- owned and used in the trade or business everywhere during the
through entity has invested retains that character when recognized taxable year.
by the pass-through entity. Furthermore, the pass-through entity’s
factors generally must include the proportionate share of each Line 50b – Property Rented
lower-tiered pass-through entity’s property, payroll and sales. See Enter the value of the pass-through entity’s real property and
R.C. 5733.057 and 5747.231. tangible personal property rented and used in the trade or business
within Ohio and everywhere during the taxable year. Property rented
Property Factor (Line 50) by the pass-through entity is valued at eight times the annual rental
The property factor is a fraction, the numerator of which is the rate (annual rental expense less subrental receipts).
average value of the corporation’s includable real and tangible
personal property owned or rented, and used in the trade or business Line 50c – Property Total – Within Ohio and Total
in this state during the taxable year, and the denominator of which Everywhere
is the average value of all the corporation’s includable real and Add lines 50a and 50b for Within Ohio and Total Everywhere.
tangible personal property owned or rented, and used in the trade Line 50c – Property Ratio
or business everywhere during such year. Enter the ratio of property Within Ohio to Total Everywhere by
For taxable years ending on or after June 26, 2003, the property dividing the Within Ohio amount by the Total Everywhere amount.
factor specifically includes real property and tangible personal Line 50c – Weighted Property Ratio
property that the pass-through entity rents, subrents, leases Multiply the property ratio on line 50c by the property factor weight
or subleases to others if the income or loss from such rentals, of 20%.
subrentals, leases or subleases is business income. Furthermore,
for taxable years ending on or after June 26, 2003, Ohio law Payroll Factor (Line 51)
specifi cally excludes from the factor property relating to, or used in The payroll factor is a fraction, the numerator of which is the
connection with, the production of nonbusiness income allocated total compensation paid in this state during the taxable year by
under R.C. 5733.051. the pass-through entity, and the denominator of which is the
total compensation paid both within and without this state during
Property owned by the pass-through entity is valued at its the taxable year by the pass-through entity. As used below, the
original cost average value. Average value is determined term “compensation” means any form of remuneration paid to an
by adding the cost values at the beginning and at the end employee for personal services. Do not include in Within Ohio
of the taxable year and dividing the total by two. The tax or in Total Everywhere the following:
commissioner may require the use of monthly values during
the taxable year if such values more reasonably refl ect the • Guaranteed payments made to partners.
average value of the corporation’s property.
• Compensation paid in Ohio to employees who are primarily
In determining average value do not include in either “Within Ohio” engaged in qualifi ed research.
or “Total Everywhere” the following:
• Compensation paid to employees to the extent that the
• Construction in progress. compensation relates to the production of nonbusiness income
allocable under R.C. 5733.051 (see R.C. 5733.05(B)(2).
• Property relating to, or used in connection with, the production
of nonbusiness income. See R.C. 5733.05(B)(2). • Compensation that an S corporation paid to any shareholder
included in this report if the shareholder directly or indirectly
• The original cost of property within Ohio with respect to which the owned at least 20% of the S corporation at any time during the
state of Ohio has issued an Air Pollution, Noise Pollution, or an
year. R.C. 5733.40(A)(7).
Industrial Water Pollution Control Certifi cate. See R.C. 5733.05(B)
(2)(a). Do not include in Within Ohio, but do include in Total Everywhere,
compensation paid in Ohio to certain specifi ed new employees
• The original cost of real property and tangible property (or in at an urban job and enterprise zone facility for which the
the case of property that the pass-through entity is renting from
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IT 4708
Rev. 1/15
pass-through entity has received a Tax Incentive Qualification • Dividends;
Certifi cate issued by the Ohio Development Services Agency.
• Receipts and any related gains or losses from the sale or other
Line 51 – Payroll Within Ohio disposal of intangible property other than trademarks, trade
Enter the total amount of the pass-through entity’s compensation names, patents, copyrights and similar intellectual property;
paid in Ohio during the taxable year. Compensation is paid in Ohio
if any of the following apply: • Receipts and any related gains and losses from the sale or other
disposal of tangible personal property or real property where that
• The recipient’s service is performed entirely within Ohio; OR property is a capital asset or an asset described in I.R.C. 1231.
For purposes of this provision the determination of whether or
• The recipient’s service is performed both within and outside not an asset is a capital asset or a 1231 asset is made without
Ohio, but the service performed outside Ohio is incidental to the regard to the holding period specifi ed in the I.R.C.; AND
recipient’s service within Ohio; OR
• Receipts from sales to (i) an at-least 80%-owned public utility
• Some of the recipient’s service is performed within Ohio and other than an electric company, combined electric company,
either the recipient’s base of operations, or if there is no base of or telephone company, (ii) an at-least 80%-owned insurance
operations, the place from which the recipient’s service is directed company, or (iii) an at-least 25%-owned fi nancial institution.
or controlled is within Ohio, or the base of operations or the place
from which the service is directed or controlled is not in any state Note: Income and gain from receipts excluded from the sales factor
in which some part of the service is performed, but the recipient’s is not presumed to be nonbusiness income. All income, gain, loss and
residence is in Ohio. expense is presumed to be apportionable business income – even if
the related receipts are excluded from the sales factor. A pass-through
Compensation is paid in Ohio to any employee of a common or entity reporting any allocable income from Schedule I, lines 4 and 8
contract motor carrier corporation who performs his regularly must attach to the report (i) a schedule indicating the type and the
assigned duties on a motor vehicle in more than one state in amount for each item of income, (ii) a statement explaining why the
the same ratio by which the mileage traveled by such employee income is not business income and (iii) a list of states, if any, for which
within Ohio bears to the total mileage traveled by such employee the pass-through entity treats such income as business income.
everywhere during the taxable year. The statutorily required mileage
ratio applies only to contract or common carriers. Thus, without The law specifi cally includes in the sales factor the following amounts
approval by the tax commissioner a manufacturer or merchant who when arising from transactions, activities and sources in the regular
operates its own fl eet of delivery trucks may not situs driver payroll course of a trade or business: (1) receipts from sales of tangible
based upon the ratio of miles traveled in Ohio to miles traveled personal property, (2) receipts from the sale of real property inventory
everywhere. See Cooper Tire and Rubber Co. v. Limbach (1994), (such as lots developed and sold by a real estate developer), (3) rents
70 Ohio St. 3d 347. and royalties from tangible personal property, (4) rents and royalties
from real property, (5) receipts from the sale, exchange, disposition
Line 51 – Payroll – Total Everywhere or other grant of the right to use trademarks, trade names, patents,
Enter the total amount of the pass-through entity’s compensation copyrights and similar intellectual property, (6) receipt from the sale
paid everywhere during the taxable year. of services and other receipts not expressly excluded from the factor.
Line 51 – Payroll – Ratio These amounts are situsable to Ohio as set out below.
Divide Within Ohio payroll by Total Everywhere payroll to arrive at Line 52 – Sales Within Ohio
the payroll ratio. Enter the total of gross receipts from sales not excludable from the
Line 51 – Weighted Payroll Ratio numerator and the denominator of the sales factor, to the extent
Multiply the payroll ratio on line 51 by the payroll factor weight of the includable gross receipts refl ect business done in Ohio. Sales
20%. within Ohio include the following:
• Receipts from sales of tangible personal property, less returns
Sales Factor (Line 52) and allowances, received by the purchaser in Ohio. In the case
The sales factor is a fraction whose numerator is the pass-through of delivery of tangible personal property by common carrier or by
entity’s includable business income receipts in Ohio during the other means of transportation, the place at which such property
taxable year and whose denominator is the sum of the pass-through is ultimately received after all transportation has been completed
entity’s within Ohio and without Ohio includable business income is considered as the place at which such property is received by
receipts during the taxable year. the purchaser. Direct delivery in Ohio, other than for purposes
The sales factor specifi cally excludes receipts attributable to of transportation, to a person or fi rm designated by a purchaser
nonbusiness income allocable under R.C. 5733.051 (see R.C. constitutes delivery to the purchaser in Ohio, and direct delivery
5733.05(B)(2) and the tax commissioner’s April 2004 information outside Ohio to a person or fi rm designated by a purchaser does
release entitled “Sales Factor Situsing Revisions”). not constitute delivery to the purchaser in Ohio, regardless of
where title passes or other conditions of sale. Customer pick-up
The following receipts are not includable in either the numerator or sales are situsable to the final destination after all transportation
the denominator of the sales factor even if the receipts arise from (including customer transportation) has been completed. See
transactions, activities and sources in the regular course of a trade Dupps Co. v. Lindley (1980), 62 Ohio St. 2d 305.
or business (see R.C. 5733.05(B)(2)(c)):
Revenue from servicing, processing or modifying tangible
• Interest or similar amounts received for the use of, or for the personal property is sitused to the destination state as a sale of
forbearance of the use of, money; tangible personal property. See Custom Deco, Inc. v. Limbach,
BTA Case No. 86-C-1024, June 2, 1989.
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IT 4708
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• Receipts from sales of real property inventory in Ohio. a pass-through entity owns and restores a historic building with
respect to which the Ohio Development Services Agency issued
• Rents and royalties from tangible personal property to the extent a preservation tax credit certifi cate for the pass-through entity’s
the property was used in Ohio. “qualifi ed rehabilitation expenditures,” the pass-through entity can
allocate the credit among the pass-through entity’s equity owners
• Rents and royalties from real property located in Ohio. in proportion to their ownership interests or in such proportions or
amounts as the equity owners mutually agree. The new law applies
• Receipts from the sale, exchange, disposition or other grant of to credits claimed with respect to certifi cates issued in taxable
the right to use trademarks, trade names, patents, copyrights and years ending on or after Oct. 16, 2009. See section 803.20 of the
similar intellectual property are sitused to Ohio to the extent that bill. (While prior law did not specifi cally address credit allocation,
the receipts are based on the amount of use of that property in the Ohio Development Services Agency maintained that the pass-
Ohio. If the receipts are not based on the amount of use of that through entity must allocate the credit to each equity investor in
property, but rather on the right to use the property and the payor accordance with the investor’s interest in the pass-through entity on
has the right to use the property in Ohio, then the receipts from the date that the pass-through entity fi led the tax credit certificate
the sale, exchange, disposition or other grant of the right to use request.)
such property are sitused to Ohio to the extent the receipts are
based on the right to use the property in Ohio. For project applications that are approved after March 13, 2008
(“Round 2” and subsequent rounds) the credit is limited to $5 million
• Receipts from the performance of services and receipts from any per project and the credit can contain a refundable portion and a
other sales not excluded from the sales factor and not otherwise nonrefundable portion. If the credit allowed for any taxable year
sitused within or without Ohio under the above situsing provisions exceeds the tax otherwise due under R.C. 5747.02, after allowing for
are situsable to Ohio in the proportion to the purchaser’s benefit, any other credits preceding the credit in the order prescribed by R.C.
with respect to the sale, in Ohio to the purchaser’s benefi t, with 5747.98, the excess will be refunded to the taxpayer but, if any amount
respect to the sale, everywhere. The physical location where of the credit is refunded, the sum of the amount refunded and the
the purchaser ultimately uses or receives the benefi t of what amount applied to reduce the tax otherwise due for that year may not
was purchased is paramount in determining the proportion of exceed $3 million or, if the certifi cate owner is a pass-through entity,
the benefi t in Ohio to the benefit everywhere. The “cost-of may not exceed the taxpayer’s distributive or proportionate share of
performance” provision is no longer the law. $3 million. The taxpayer may carry forward any balance of the credit
in excess of the amount claimed for that year for not more than five
Line 52 – Sales – Total Everywhere
ensuing taxable years, and must deduct any amount claimed for any
Enter the total of such includable gross receipts, less returns and
such year from the amount claimed in an ensuing year.
allowances, from sales everywhere.
Additional information is available on the ODSA’s Web site at http://
Line 52 – Sales – Ratio
development.ohio.gov/cs/cs_ohptc.htm.
Divide Within Ohio sales by Total Everywhere sales to arrive at the
sales ratio. Line 55 – Business Jobs Credit
If the pass-through entity claims the refundable business jobs credit
Line 52 – Weighted Sales Ratio
provided by R.C. 5747.058, attach a copy of the certifi cate of
Multiply the sales ratio on line 52 by the sales factor weight of 60%.
verifi cation issued by the Ohio Development Services Agency.
Line 53 – Total Weighted Apportionment Ratio The amount of the credit equals the amount of Ohio income tax
Add lines 50c , 51 and 52. Enter ratio here and on Schedule I, line the pass-through entity withheld from compensation paid to new
6 and on page 1 in the designated box. employees during its taxable year multiplied by the percentage
specifi ed in the pass-through entity’s agreement with the Tax Credit
Note: For taxable years beginning on or after Jan. 1, 2013, pass- Authority. The term “new employee” means a full-time employee first
through entities who intend to submit requests for alternative employed by the pass-through entity in the project that is the subject
apportionment are now required to submit such requests with a of the tax credit agreement after the pass-through entity enters into
timely filed return or amended return. Prior to this change, the the agreement. New employees include employees hired after the
request was not required to be submitted by the return’s due date. Tax Credit Authority approves the pass-through entity’s project, but
See R.C. 5747.21. before the pass-through entity signs the tax credit agreement with
the Tax Credit Authority, as long as the pass-through entity signs
Schedule V – Refundable Business Credits the agreement within 60 days after receiving the agreement from
the Ohio Development Services Agency. If the authority determines
Line 54 – Ohio Historic Preservation Credit Refundable Portion that it is appropriate, a “new employee” may include an employee
Administered by the Ohio Development Services Agency (ODSA), rehired or called back from layoff to work in a new facility or on a
the historic preservation credit applies to owners of certain historic new product or service.
Ohio buildings for the expenditures paid or incurred to rehabilitate
such buildings provided that ODSA approves the proposed If a pass-through entity claims the refundable new jobs creation
rehabilitation project. If ODSA approves the project, the credit equals credit with respect to an employee, the pass-through entity may
25% of the owner’s “qualifi ed rehabilitation expenditures” (QREs) not claim the nonrefundable R.C. 5709.66 enterprise zone new
paid or incurred during the 24- or 60-month rehabilitation period employee credit with respect to that employee.
shown on the taxpayer’s tax credit certifi cate issued by ODSA. The
historic building’s owners can claim the credit against their income The Tax Credit Authority and Ohio Development Services Agency
tax liability. See R.C. 149.311 and 5747.76. administer this credit. For additional information including tax credit
application procedures, call 614-466-4551 or 1-800-848-1300 or
Amended Substitute House Bill 1, 128th General Assembly Effective visit the Ohio Development Services Agency’s Web site at http://
July 17, 2009 amended the credit to specifi cally provide that if development.ohio.gov.
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IT 4708
Rev. 1/15
Line 56 – Pass-through Entity Credit • A paper copy of pages 1 and 2 of the IRS schedule K-1s that
If this pass-through entity has invested in another partnership or this entity will issue to each investor in this entity. The K-1s must
limited-liability company (“investee pass-through entity”) that filed indicate the amount of the pass-through entity tax credit (net
either Ohio form IT 1140 or Ohio form IT 4708 on behalf of this of overpayments) that, for Ohio income tax purposes, will pass
investor pass-through entity, then this investor pass-through entity through as a credit from this pass-through entity to each investor
is entitled to a refundable credit equal to this investor pass-through whose income is included in this report. Please do not include any
entity’s proportionate share of the tax that the investee pass-through attachments or statements relating to the K-1s. (See “Tax Credit
entity paid on behalf of this investor pass-through entity for that Available to Investors” below.)
investee pass-through entity’s taxable year ending within or with
this investor pass-through’s taxable year end. Please attach a • Magnetic media meeting the specifications that the IRS requires
copy of the IRS form K-1 setting forth the credit amount that for transmission of information by electronic media (for more
this investor pass-through entity received from the investee information, see IRS publication 1525 and 3416). The magnetic
pass-through entity. See R.C. 5747.059 and 5747.08(J). media must set forth the same K-1 information described above.
Line 57 – Refundable Credit for Losses on Loans Made to the • Information in ASCII Comma Delimited Format appear in the
Ohio Venture Capital (OVC) Program (R.C. 150.01 to 150.10, following order:
5747.80 and 5747.98)
The purpose of the credit is to provide OVC lenders and investors 1. FEIN of the pass-through entity or trust.
some security against losses on their loans to the program.
2. Name of the pass-through entity or trust.
Substitute Senate Bill 321, 126th Ohio General Assembly, made the
3. Social Security number or FEIN of this investor.
credit for losses on loans made to the OVC program refundable.
Under prior law the taxpayer had a choice of taking this credit as a 4. Name of investor in this entity.
refundable credit or as a nonrefundable credit.
5. Street address of the investor set forth in field number 3.
Line 58 – Motion Picture Production Credit
A motion picture company whose motion picture has been certified 6. City of the investor set forth in field number 3.
as a tax credit-eligible production may apply to the director of the
Ohio Development Services Agency on or after July 1, 2009 for 7. State of the investor set forth in field number 3.
a refundable credit against the income tax. The credit equals a
8. ZIP code of the investor set forth in field number 3.
percentage of the motion picture company’s eligible production
expenditures with respect to the tax credit-eligible production. See 9. The amount of Ohio form IT 4708 tax paid (net of overpayments,
R.C. 122.85 and 5747.66. if any, previously paid) that will pass through as a credit from
this pass-through entity to each investor whose income is
If the lesser of (a) total budgeted eligible production expenditures
included in this return set forth in fi eld number 3. (See “Tax
as stated in the application for certifi cation as a tax credit eligible
Credit Available to Investors” below.)
production or (b) the actual eligible production expenditures, as
determined by an independent CPA hired at the motion picture The return preparer must repeat the sequence set forth in fields
company’s expense, is greater than $300,000, the credit equals number 1 through number 9 for each investor.
the sum of the following:
Preparers using magnetic media must affi x to the outside of the
(i) 25% of the lesser of such budgeted or actual eligible expenditure magnetic media a label containing the following information in large
amounts excluding budgeted or actual eligible expenditures for cast type or print: (i) the name and FEIN of the pass-through entity, (ii)
and crew wages for Ohio residents; the phrase, “IT 4708 K-1 Information,” and (iii) the phrase, “Taxable
Year Ending in 2014.”
(ii) 35% of budgeted or actual eligible expenditures for cast and
crew wages of Ohio residents. Tax Credit Available to Investors
Prior to issuing to investors whose income is included in this return
If the lesser of the budgeted or actual amounts described in (a)
the IRS form K-1, this pass-through entity should indicate on each
and (b) above is less than or equal to $300,000, the credit does not
IRS form K-1 the investor’s portion of the Ohio form IT 4708 net tax
apply. For additional information, please visit the Ohio Development
paid by this pass-through entity for the taxable year, even if the tax
Services Agency’s Web site at http://www.ohiofilmoffice.com.
is paid (or if the refund is received) after the end of the taxable year.
Schedule VI – Investor Information The investor can claim this amount as a credit on Ohio forms IT
1040, IT 1041 or IT 4708. R.C. 5747.08(J) sets forth the conditions
Please provide investor information for all investors in the pass- for claiming this credit. Investors claiming the credit on Ohio forms IT
through entity, which is any of the following: 1040, IT 1041 or IT 4708 must include with that form a copy of the K-1.
• Completion of Schedule VI and additional sheet(s) if necessary.
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IT 4708
Rev. 1/15
Apportionment Formula for Financial Institution Pass-Through Entities
For a pass-through entity that is a fi nancial institutuion, the apportionment formula should be calculated in accordance with Ohio Revised
Code (R.C.) section 5733.056. Use of this worksheet to calculate the apportionment formula for a pass-through entity that is a financial
institution. Note: All ratios are to be carried to six decimal places.
Apportionment Ratio (1) (2) (3)
Ohio Everywhere Ratio
Sales Factor – R.C. 5733.056(F)
1. Receipts from the lease, sublease or rental of real property ....................
2. Receipts from the lease or rental of tangible personal property ...............
3. Interest from loans secured by real property ............................................
4. Interest from loans not secured by real property ......................................
5. Net gains from the sale of loans secured by real property .......................
6. Net gains from the sale of loans not secured by real property .................
7. Interest and fees charged to credit card holders ......................................
8. Net gains from the sale of credit card receivables ...................................
9. Credit card issuer’s reimbursement fees ..................................................
10. Receipts from merchant discount .............................................................
11. Loan-servicing fees from loans secured by real property.........................
12. Loan-servicing fees from loans not secured by real property...................
13. Loan-servicing fees for servicing the loans of others ...............................
14. Receipts from services not otherwise apportioned...................................
15. Interest, dividends, net gains and other income from both
investment assets and activities and trading assets and activities...........
Check method: Avg. value method Gross income method
16. Certain other receipts ...............................................................................
17. Total. Enter ratio here and on Summary, line 1, below ............................. ÷ =
Property Factor – R.C. 5733.056(D) Ohio Everywhere
18. Real property and tangible personal property owned ..............................
19. Real property and tangible personal property rented x 8 ........................
20. Loans and credit card receivables ...........................................................
21. Total. Enter ratio here and on Summary, line 2, below ............................ ÷ =
Payroll Factor – R.C. 5733.056(E)
Ohio Everywhere
22. Compensation paid to employees. Enter ratio here and on
Summary, line 3, below ............................................................................
(1) (2) (3)
Apportionment Ratio Summary Factor ÷ Weight = Weighted Factor
1. Sales (line 17) ......................................................................................... x .70 =
2. Property (line 21) ..................................................................................... x .15 =
3. Payroll (line 22) ....................................................................................... x .15 =
4. Total weighted apportionment ratio ............................................................................................................................
If the denominator of any factor is zero, the weight given to the other factors must be proportionately increased so that the total weight
given to the combined factors used is 100%.
Federal Privacy Act Notice
Because we require you to provide us with a Social Security number, the Federal Privacy Act
of 1974 requires us to inform you that providing us your Social Security number is mandatory.
Ohio Revised Code sections 5703.05, 5703.057 and 5747.08 authorize us to request this
information. We need your Social Security number in order to administer this tax.
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Taxpayer Assistance
By Internet Ohio Department of Taxation For the deaf, hearing-impaired or
Web Site –tax.ohio.gov speech-impaired who use TTY or
TDD only: Please contact the Ohio Re
E-mail Us Instructions lay Service at 1-800-750-0750 or 7-1-1
Frequently Asked Questions Refund Status and give the communication assistant
Information Releases Tax Forms the Ohio Department of Taxation phone
number that you wish to contact.
Volunteer Income Tax Assistance
By Phone Toll-Free Telephone Numbers Program (VITA) and Tax Counseling
for the Elderly (TCE): These programs
Toll-Free 24-HourRefund Hotline 1-800-282-1784
help older, disabled, low-income and
Toll-Free Form Requests 1-800-282-1782 non-English-speaking people fi ll in their
Toll-Free Tax Questions 1-800-282-1780 state and federal returns. For locations
in your area, call the IRS at 1-800-829
1040.
Written Ohio Department of Taxation
Taxpayer Services Mailing Address
Ohio Department of Taxation
Taxpayer Services Division
P.O. Box 182382
Columbus, OH 43218-2382
Walk-in Ohio Department of Taxation
Taxpayer Service Center
Taxpayer Service Center Hours
Offi ce hours: 8 a.m. – 5 p.m.
Monday through Friday
4485 Northland Ridge Blvd., 1st Floor
Columbus, OH 43229-6596
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