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 performed the required depreciation addback in a prior year. I have since sold the asset that generated the depreciation prior to utilizing the subsequent depreciation deductions. Can I either accelerate the remaining deduction amounts to the year of the sale or reduce the gain I report for Ohio income tax purposes?

The deduction cannot be accelerated; it must be taken in equal increments over the subsequent tax years. Additionally, Ohio law specifically states the Ohio depreciation adjustments do not adjust or modify the adjusted basis in any asset. As such, the gain you report on your Ohio return should match the gain you recognized on your federal return.

However, the taxpayer is still able to take the deduction for the remaining years, even if the taxpayer no longer owns the underlying asset.

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