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 are Ohio's depreciation adjustments?

Generally, Ohio’s income tax begins with federal adjusted gross income.  However, in order to smooth the revenue impact of accelerated I.R.C. §179 and §168(k) depreciation expenses, Ohio requires taxpayers to add back certain amounts of accelerated depreciation expense in the year they are recognized for federal tax purposes.  Ohio then allows the taxpayer to deduct those amounts more gradually over a period of years.

As a general rule, a taxpayer will add back the accelerated depreciation expense in year 1, and then take a deduction in the subsequent years until all of the Ohio depreciation addback is claimed on the Ohio tax return.  For federal tax purposes, the depreciation expense amounts are calculated on IRS form 4562.

See R.C. 5747.01(A)(20) and (21).