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.

If a sale of business property is treated as ordinary income on Form 4797 of the federal 1040, does this income qualify as business income to be included on the IT BUS? Would a capital gain arising from the sale of a business asset also qualify as business income?

To be included on the IT BUS, income must be considered to be “business income” under Ohio law. See O.R.C. 5747.01(B) and (C) and Kemppel v. Zaino, 91 Ohio St.3d 420 (2001).  If a business’ property was an integral part of a taxpayer’s business operation, that taxpayer likely has a good argument that the gain on the sale of that property was business income. Capital gains reported on federal Schedule D that qualify as business income should be reported on line 3 of the IT BUS. Gains reported on federal form 4797 that qualify as business income should be reported on line 7 of the IT BUS.