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.

Can a PTE (PTE 1) filing the IT 1140, claim credit for amounts paid by another PTE (PTE 2) if PTE 1 is an owner of PTE 2?

If PTE 1 invests in PTE 2, and files an IT 1140, PTE 1 is not entitled to any credit for the proportionate share of tax paid by PTE 2, nor can PTE 1 claim the payment by PTE 2 as an estimated payment on PTE 1’s tax return.

When filing the IT 1140, Ohio law does not allow for a pass-through entity to utilize any credits, including the credit under R.C. 5747.059 for IT 1140 payments made by another pass-through entity. The way  for PTE 1 to claim a credit for payments made by PTE 2 where  PTE 1 is a direct or indirect qualified investor is to file the IT 4708. See R.C. 5747.08(D)(1)(a) and (2). However, PTE 1 can “pass through” (via the Ohio IT K-1) to its investors the proportionate share of such tax that PTE 2 paid on behalf of PTE 1. This information pertains to all types of pass-through entities, as well as trusts. For additional information and/or to obtain a copy of the Ohio IT K-1 visit the Tax Alert and/or Tax Forms link below.

Pass-Through Entity Tax News and Filing Tips

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