Income - Business Income Deduction FAQs

What is Nonbusiness income?

ORC 5747.01(C): “Nonbusiness Income” means income that is not business income and could include… 

  • Compensation / guaranteed payments made from PTEs to less than 20% owners
  • Compensation paid from sole proprietorships
  • The following items if NOT received in the ordinary course of a trade or business operation:   

ü  Royalties from real or tangible property

ü  Rents from real or tangible property

ü  Capital gains

ü  Interest

ü  Dividends and distributions

ü  Patent, copyright royalties