FAQs - Pass Through Entity

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Who should file Ohio form IT 4708, and who should file Ohio form IT 1140?Can a PTE file an Ohio form IT 4708 composite return on behalf of nonresident individual qualifying investors and an Ohio form IT 1140 PTE return for the remaining nonresident individual qualifying investors who have not elected to be included in the composite return?Is a PTE subject to filing the Ohio form IT 1140 if all of its nonresident equity investors file Ohio form IT 1040 returns?Can an Individual Investor file an IT 1040 when the investor has been included in an IT 4708 Composite Pass-Through Entity Return?If a nonresident individual qualifying investor is included in Ohio form IT 1140, is the individual required to file the IT 1040 Ohio individual income tax return?If a nonresident individual invests in several Ohio PTEs: (a) Can the nonresident individual be included in an Ohio form IT 4708 for some PTEs and included in the Ohio form IT 1140 for others? (b) Does the answer change if the PTEs are related?What prevented the tax department from mandating that all pass-through entities file form IT 4708 for its nonresident investors rather than allowing an option for filing form IT 1140?Many PTEs can file either Ohio form IT 4708 or IT 1140. Since actual payments can be transferred from one return to the other for the same taxpayer, shouldn't the tax due computed on both returns be the same?Can a PTE utilize a credit received by another PTE in which the Pass-through is an investor?Provide an example of a completed Ohio form IT 4708 which sets forth an amount on line 19, pass-through entity credit.Why can't PTEs owned by nonresident individuals who file and pay the Ohio IT 1040 provide a written statement agreeing they have nexus and are in compliance; thus exempting them from filing the IT 1140 much like corporations can?What is the department's position in a case where (a) the S-corporation or partnership has considerably less funds available than the distributive share and/or (b) by law the funds can not be used for withholding on a regular basis?Regarding interest income earned from a PTE: (a) Is PTE-earned interest income taxable to Ohio if the person is an out-of-state resident and (b) If the interest income is also taxed by another state, can the non-Ohio resident properly claim a credit on the Ohio individual income tax return?If the PTE is not subject to Ohio tax, what is the procedure for a nonresident investor to recover an amount erroneously withheld by a PTE and paid via Ohio form IT 1140ES? Why was Ohio Revised Code Section 5747.08 (D) (1) (a) amended a few years ago to allow residents to file as members of a Ohio form IT 4708 composite return?Is the PTE tax deductible for Ohio income and corporation franchise tax purposes?Ohio form IT 1140, Schedule B, line 1 asks for the "Sum of all qualifying investors' distributive shares of income and gain." What lines from the IRS form 1065, Schedule K and IRS form 1120S, Schedule K, comprise "income and gain" on Schedule B, line 1?On Ohio forms IT 1140 (Sch. B, line 4) and IT 4708 (Sch. II, line 28), PTEs must add back the qualifying investors' shares of expenses and losses from transactions between the PTE and its related members. Please explain the reason for the add-back.In the example provided below, what is the effect of R.C. section 5733.40(A) (7) on Ohio's reciprocity agreements with other states?An Ohio resident who owns at least 20% of an S corporation is an employee of that S corporation and receives wages for services performed in Michigan. Does the reciprocity agreement between Michigan and Ohio apply to this shareholder-employee wages?What is a "related member"? Can you provide an example?Is Form FT 1120 S (Notice of S Corporation Status) required for tax years after 2009?
  

 

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