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 form should an investment pass-through entity file to pass its income and credits through to its investors?

The income and credits automatically pass from a pass-through entity to its direct and indirect investors; therefore, no filing is required in order for this to occur.  However, in order to trace such amounts for both the direct/indirect investor(s) and the Department’s benefit, an investment PTE may file an IT 1140 and exclude all income from intangible sources, such as distributive shares of income from other pass-through entities, in order to illustrate the chain of ownership and flow of income from entity to entity. 

Please attach the following documentation to any such filing:

  1. A copy of the Federal return.
  2. An Ohio IT K-1 for each investor which shows the proportionate share of the income and credits being passed from the lower tier PTE (investee PTE) to the investors of the filing tier PTE (investor PTE). 
  3. The Ohio IT K-1(s), federal K-1(s) and/or other supporting documentation and statements showing the source of income and credits from each lower tier PTE included on the investee PTE’s return. 

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