2023-143 Ordinance - Laserfiche WebLink

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(C)(21)(b) of this section, and further reduced by any pre -2017 net operating loss carryforward available to the individual for the municipal corporation. (b) For an individual who is a nonresident of the City, income reduced by exempt income to the extent otherwise included in income and then, as applicable, apportioned or sitused to the municipal corporation under Section 1501.03 , then reduced as provided in division (C)(21)(b) of this section, and further reduced by any pre -2017 net operating loss carryforward available to the individual for the City. (b) In computing the municipal taxable income of a taxpayer who is an individual, the taxpayer may subtract, as provided in division (C)(21)(a)(ii)(a) or (C)(21)(b) of this section, the amount of the individual's employee business expenses reported on the individual's form 2106 that the individual deducted for federal income tax purposes for the taxable year, subject to the limitation imposed by Section 67 of the Internal Revenue Code. For the municipal corporation in which the taxpayer is a resident, the taxpayer may deduct all such expenses allowed for federal income tax purposes, but only to the extent the expenses do not relate to exempt income. For a municipal corporation in which the taxpayer is not a resident, the taxpayer may deduct such expenses only to the extent the expenses are related to the taxpayer's performance of personal services in that nonresident municipal corporation and are not related to exempt income. (22) "Municipality" means the same as the City of North Olmsted. If the terms are capitalized in the ordinance they are referring to North Olmsted. If not capitalized they refer to a municipal corporation other than North Olmsted. (23) "Net operating loss' means a loss incurred by a person in the operation of a trade or business. "Net operating loss' does not include unutilized losses resulting from basis limitations, at -risk limitations, or passive activity loss limitations. (24) (a) "Net profit" for a person other than an individual means adjusted federal taxable income. (b) "Net profit" for a person who is an individual means the individual's net profit required to be reported on schedule C, schedule E, or schedule F reduced by any net operating loss carried forward. For the purposes of division (C)(24)(b) of this section, the net operating loss carried forward shall be calculated and deducted in the same manner as provided in division (C)(1)(h) of this section. (c) For the purposes of this chapter/ordinance, and notwithstanding division (C)(24)(a) of this section, net profit of a disregarded entity shall not be taxable as against that disregarded entity, but shall instead be included in the net profit of the owner of the disregarded entity. (d) A publicly traded partnership that is treated as a partnership for federal income tax purposes, and that is subject to tax on its net profits by the City, may elect to be treated as a C corporation for the City. The election shall be made on the annual return for the City. The City will treat the publicly traded partnership as a C corporation if the election is so made.