2023-143 Ordinance - Laserfiche WebLink

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(21)(a) "Municipal taxable income" means the following (i) For a person other than an individual, income apportioned or sitused to the City under Section 1501.03, as applicable, reduced by any pre -2017 net operating loss carryforward available to the person for the City. (ii)(a) For an individual who is a resident of the City, income reduced by exempt income to the extent otherwise included in income, 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 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 (CX21)(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 (CX21 Xa)(ii)(a) or (CX21Xb) 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 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 the City of North Olmsted. If not capitalized they refer to a municipal corporation other than the City of 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. (a) "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)(a) of this section, the net operating loss carried forward shall he calculated and deducted in the same manner as provided in division (CX24)(c) of this section. (b) "Net profit' for a person other than an individual means adjusted federal taxable income reduced by any net operating loss incurred by the person in a taxable year beginning on or after January I, 2017, subject to the limitations of division (C)(24)(c) of this section. (c)(i) The amount of such operating loss shall be deducted from net profit to the extent necessary to reduce municipal taxable income to zero, with any remaining unused portion of the net operating loss carried forward to not more than five (5) consecutive taxable years following