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.

Should business losses be included in the calculation of my business income on the IT BUS?

All items of business income must be included. “Business income” includes both business gains and business losses. Thus, if the loss is included in the calculation of your federal adjusted gross income, you must include it when calculating your business income.

For example, a taxpayer that reports a gain from one sole proprietorship on federal Schedule C and a loss from another should net the amounts together and report the sum on line 2 of the IT BUS.

However, business losses that a taxpayer was required to carry forward to a future tax year due to federal limitations should not be included because they were not used in the calculation of federal adjusted gross income.

See R.C. 5747.01(B).