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.

Taxpayer has Subchapter S ordinary income from the K-1 (100% Ohio source) reported on federal Schedule E. Does it make any difference if the shareholder is a material participant or not?

No, the shareholder does not have to be a material participant. The income can be passive; to the extent it is business income and included in Ohio Adjusted Gross income, it may qualify for the deduction.