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?

Capital gains are generally considered nonbusiness income. Nonbusiness capital gains are not eligible for the Business Income Deduction.

Capital gains include gains from the sale of intangible personal property, such as an individual’s ownership interest in a business. Please note, capital gains resulting from the sale of an individual’s ownership interest in a business that are “deemed asset sales” (e.g. I.R.C. 338(h)(10)) are still considered to be the sale of intangible personal property for Ohio income tax purposes, and thus are generally not eligible for the Business Income Deduction.

See R.C. 5747.01(C).

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