FAQs - Pass Through Entity

Can a PTE utilize a credit received by another PTE in which the Pass-through is an investor?

If a pass-through entity or trust has invested in a partnership or limited liability company that also filed Ohio form IT 1140, the pass-through entity or trust is not entitled to any credit for the pass-through entity’s or trust proportionate share of tax. Furthermore, the pass-through entity or trust cannot claim the credit as an estimated payment for the pass-through entity’s or trust’s taxable year.   Any attempt to utilize IT 1140 payments from another pass-through entity's IT 1140 will be disallowed

However, the pass-through entity or trust can “pass through” (via the K-1s it will issue) to its qualifying investors or to its qualifying beneficiaries the pass-through entity’s or trust’s proportionate share of such tax that the investee partnership or investee limited liability company paid on behalf of the pass-through entity or trust. For additional information and the new form Ohio IT K-1 please go to the below link  (Tax Alert)

http://www.tax.ohio.gov/Portals/0/OhioTaxAlert/ArchivedAlerts/PassThroughEntityTaxNewsandFilingTips.pdf