Legal Resources

Tax Reform Frequently Asked Questions

What is Nonbusiness income?

ORC 5747.01(C): “Nonbusiness Income” means income that is not business income and could include… 

  • Compensation / guaranteed payments made from PTEs to less than 20% owners
  • Compensation paid from sole proprietorships
  • The following items if NOT received in the ordinary course of a trade or business operation:   

  Royalties from real or tangible property

  Rents from real or tangible property

  Capital gains 


  Dividends and distributions

  Patent, copyright royalties