Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in.  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

Does net rental income reported on Schedule E qualify for the deduction?

Yes, to the extent it is business income and not otherwise deducted or excluded in computing Ohio Adjusted Gross Income for the taxable year. Rental income that is received on a regular basis (ex: monthly) would be considered to be in the ordinary course of business.  

Examples:

  • Taxpayer lives at Muirfield Village in Dublin, Ohio and rents out their house for two weeks during the Memorial Golf Tournament.  Does this income qualify for the small business deduction?
    • No, temporarily renting your primary residence for a limited time frame is not considered to be in the ordinary course of business.
  • Taxpayer has one or more rental properties and receives rent on a regular, consistent basis.  Does the rental income qualify for the small business deduction?
    • Yes 

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