04-18 Amend Municipal Net Profit Taxes 128.22 - 128.2215

Home Browse Search

(B) Subsection (b)(4)(A) of this section does not apply to the extent the income or gain is income or gain described in section 1245 or 1250 of the Internal Revenue Code. (5) Add taxes on or measured by net income allowed as a deduction in the computation of federal taxable income. (6) In the case of a real estate investment trust or regulated investment company, add all amounts with respect to dividends to, distributions to, or amounts set aside for or credited to the benefit of investors and allowed as a deduction in the computation of federal taxable income. (7) Deduct, to the extent not otherwise deducted or excluded in computing federal taxable income, any income derived from a transfer agreement or from the enterprise transferred under that agreement under section 4313.02 of the Revised Code. - (8) Deduct exempt income to the extent not otherwise deducted or excluded in computing adjusted federal taxable income. (9) Deduct any net profit of a pass - through entity owned directly or indirectly by the taxpayer and included in the taxpayer's federal taxable income unless an affiliated group of corporations includes that net profit in the group's federal taxable income in accordance with subsection (e)(3)(B) of section 128.2206 of the Codified Ordinances. (10) Add any loss incurred by a pass - tbrough entity owned directly or indirectly by the taxpayer and included in the taxpayer's federal taxable income unless an affiliated group of corporations includes that loss in the group's federal taxable income in accordance with subsection (e)(3)(B) of section 128.2206 of the Codified Ordinances. If the taxpayer is not a C corporation, is not a disregarded entity that has made the election described in section 718.01 (L) (2) of the revised code, and is not a publicly traded partnership that has made the election described in section 718.01 (D) (5) of the revised code, the taxpayer shall compute adjusted federal taxable income under this section as if the taxpayer were a C corporation, except guaranteed payments and other similar amounts paid or accrued to a partner, former partner, shareholder, former shareholder, member, or former member shall not be allowed as a deductible expense unless such payments are in consideration for the use of capital and treated as payment of interest under section 469 of the Internal Revenue Code or United States treasury regulations. Amounts paid or accrued to a qualified self - employed retirement plan with respect to a partner, former partner, shareholder, former shareholder, member, or former member of the taxpayer, amounts paid or accrued to or for health insurance for a partner, former partner, shareholder, former shareholder, member, or former member, and amounts paid or accrued to or for life insurance for a partner, former partner, shareholder, former shareholder, member, or former member shall not be allowed as a deduction. Nothing in subsection (b) of this section shall be construed as allowing the taxpayer to add or deduct any amount more than once or shall be construed as allowing any taxpayer to deduct any amount paid to or accrued for purposes of federal self - employment tax.