Provide an example of a completed Ohio form IT 4708 which sets forth an amount on line 19, pass-through entity credit.
- PTE #1 is equally owned by PTE A and PTE B.
- All the investors in PTE A and PTE B are full-year non-Ohio individuals, and they have no other Ohio-sourced income.
- All three partnerships are operating partnerships, have Ohio apportionment factors of 1.000000 and have no allocable income.
- PTE #1’s profit apportioned to Ohio is $50,000.
- PTE A’s profit apportioned to Ohio is $175,000 (this amount does not include A’s share of #1’s profit).
- PTE B’s profit apportioned to Ohio is $275,000 (this amount does not include B’s share of #1’s profit).
- Each of the three partnerships files Ohio form IT 4708 and pays the tax shown thereon.
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Form IT 4708 Computation---PTE #1
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Income apportioned to Ohio
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$50,000
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Income allocated to Ohio
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0
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Ohio Taxable Income
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$50,000
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Times: tax rate for year 2010
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x.0624
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Tax before credit(s)
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$3,120
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Less: Line 19 "PTE Credit"
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(0)
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Tax after refundable credits
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$3,120
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Form IT 4708 Computation---PTE A
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Income apportioned to Ohio ($175K + $25K)
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$200,000
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Income allocated to Ohio
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0
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Ohio taxable income
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$200,000
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Times: tax rate for year 2010
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x .0624
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Tax before credit(s)
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$12,480
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Less: Line 19 "PTE Credit" (50% X $3,120)
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(1,560)
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Tax after refundable credits
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$10,920
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Form IT 4708 Computation---PTE B
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Income apportioned to Ohio ($275K + $25K)
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$300,000
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Income allocated to Ohio
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0
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Ohio taxable income
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$300,000
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Times: tax rate for year 2010
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x .0624
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Tax before credit(s)
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$18,720
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Less: Line 19 "PTE Credit" (50% X $3,120)
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(1,560)
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Tax after refundable credits
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$17,160
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Notes:
(1) Because PTE A and PTE B equally own PTE #1, PTE A and PTE B must each include in income one-half of PTE #1's profit.
(2) PTE A and PTE B can each claim one-half of the form IT 4708 tax which PTE #1 paid.
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