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.

What is nonbusiness income?

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

  • Compensation / guaranteed payments made from pass-through entities 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:
    • Royalties from real or tangible property
    • Rents from real or tangible property
    • Capital gains
    • Interest
    • Dividends and distributions
    • Patent, copyright royalties