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 recently performed the bonus depreciation addback. I have since sold the asset that generated the depreciation prior to utilizing the subsequent depreciation deductions. Can I accelerate the remaining deduction amounts to the year of the sale?

No. Under Ohio law, the deduction cannot be accelerated; it must be taken in equal increments over the subsequent tax years.  See O.R.C. 5747.01(A)(21)(a). However, the taxpayer is still able to take the deduction for the remaining years, even if the taxpayer no longer owns the underlying asset.

Example: In tax year 2016, ABC LLC takes $60,000 in accelerated depreciation on a $75,000 asset for federal tax purposes. ABC LLC also makes the 5/6 addback of $50,000 on its Ohio tax return. In 2017, ABC LLC sells the depreciated asset for $45,000. Even though ABC LLC no longer owns the depreciated asset, it should still take a $10,000 depreciation deduction in tax years 2017 through 2021. It should not take a $50,000 depreciation deduction in tax year 2017.

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