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.

Does the sale of an ownership interest in a business qualify for the Business Income Deduction? What if the sale is a "deemed asset sale" per IRC 338?

Per R.C. 5747.01(C), capital gains are considered to be nonbusiness income. This would generally include gains resulting from the sale of intangible personal property, such as an individual’s ownership interest in a business. Therefore, these gains are generally not eligible for the Business Income Deduction.

Capital gains resulting from sales of intangible personal property that are “deemed asset sales” per IRC 338 are still considered to be nonbusiness income for Ohio income tax purposes and thus, not eligible for the Business Income Deduction.

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