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.

I'm an individual. Do I have to addback bonus depreciation from a pass-through entity that I own?

Generally, an individual who has an ownership interest in a pass-through entity must addback any depreciation expense taken by the entity on the individual’s behalf.  However, the calculation of the addback is specific to the person performing the addback.  As such, the actual addback on an individual investor’s return might vary from that reported by the pass-through entity on its return; the two calculations are separate and distinct from one another.

Please also note, if an individual investor owns less than 5% of the pass-through entity, then the addback related to depreciation from that entity is not required on the individual’s IT 1040, even if the pass-through entity performed the addback on its Ohio filing (i.e. the IT 1140 or IT 4708).  See O.R.C. 5747.01(A)(20)(a).

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