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 50% 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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