Huge Deduction Available on Your 2013 Ohio Tax Return
Mar 06, 2014
As we discussed in our Accountant’s Announcements Blog last September, changes were made for 2013 impacting your Ohio tax return. One notable change was an 8.5% reduction to Ohio income tax rates.
- Compensation: Guaranteed payments, wages or other compensation paid by a pass-through entity (S corporation, partnership, limited liability company (LLC), etc.) to an individual who owns at least a 20% of the entity.
- Pass-through income from a partnership, S corporation, or LLC.
- Business income on Schedule C for sole-proprietors.
- Rental activity income on Schedule E of your form 1040.
- Income from farming.
There are restrictions based on a business income definition and the Ohio based amount of income. Also, various deductions on your form 1040 may need to be factored into the computation of your Ohio Small Business Investor Income Deduction. We would be glad to answer any questions you have or assist with the computations. Please don’t overlook this huge benefit.
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