Which form produces the higher tax?
a. Form IT 1140
b. Form IT 4708
c. Both forms produced the same tax liability
d. Does not matter since the company did not have the option of which return was filed
b Form IT 4708
If one of the owners were a corporation, the option of filing either form may no longer be available.
True
Since many PTEs have the option of filing either Form IT-1140 or IT-4708, the tax rate is the same on both forms.
False
If either individuals were an Ohio resident, there would be no need to file one of the PTE income tax forms.
False
Which of the following PTE would be subject to the tax?
a. pension plans
b. real estate investment trust
c. PTE whose sole investor is a resident of Ohio
d. PTE whose sole investor is a Michigan resident
d PTE whose sole investor is a Michigan resident
Which of the following is not recognized as a business entity in the state of Ohio?
a. sole proprietorship
b. limited liability corporation
c. limited partnership
d. business trust
b limited liability corporation
Where would one register to do business as a corporation?
a. county auditor
b. department of taxation
c. attorney general
d. secretary of state
d secretary of state
Which of the following Ohio business taxes have been or are being phased out?
a. corporate franchise tax
b. commercial activity tax
c. personal property tax
d. only a and c
e. a, b and c
d only a and c
The Ohio Business Gateway can assist new business owners in all of the following areas except:
a. finding a location for the business
b. conducting background checks on new employees
c. electronically filing federal income tax returns
d. electronically filing sales tax returns
c electronically filing federal income tax returns
Municipal income tax rates for businesses are generally:
a. the sames as those for individuals
b. higher than those for individuals
c. lower than those for individuals
d. businesses are not subject to municipal income taxes
a the same as those for individuals
School district income tax rates for businesses are generally:
a. the same as those for individuals
b. higher than those for individuals
c. lower than those for individuals
d. businesses are not subject to school income taxes
d businesses are not subject to school income taxes
Business income is allocated for multiple city income tax returns. Which of the following is not one of the factors used in this apportionment calculation?
a. gross receipts from sales or services
b. cost of goods sold
c. taxable compensation paid to employees
d. original cost of real and tangible personal property owned or used by the company
c cost of goods sold
Which of the following items that may be deductible on a company's federal tax return, are not deductible on municipal income tax returns?
a. salary paid to the sole shareholder of an S corporation where a W-2 was issued
b. interest expense on an operating loan
c. city income tax paid this year when filing last year's return
d. cost recovery where straight-line depreciation method was used
c city income tax paid this year when filing last year's return
Form BR-25 Columbus Income Tax Return for business is used by the following types of entities except
a. sole proprietorship
b. partnerships
c. S-Corporations
d. limited liability companies
a sole proprietorships
XYZ Company did not pay its last year taxes on time. If the company operates only in Columbus, what is the amount of interest and penalty that the company would be subject to?
a. .42% interest per month plus 10% penalty on the taxable income
b. .42% interest per month plus 10% penalty on the unpaid tax liability
c. 1.5% interest per month plus 10% penalty on the taxable income
d. 1.5% interest per month plus 10% penalty on the unpaid tax liability
b .42% interest per month plus 10% penalty on the unpaid tax liability
Which of the following entities is not subject to the Commercial Activity Tax?
a. hair salons
b. retailers
c. financial institutions
d. CPA firms
c financial institutions
The commercial activity tax is:
a. the same as the corporate franchise tax
b. a tax on the privilege of doing business in the state
c. imposed on any business, no matter the level of gross receipts
d. being phased out completely by 2010
b a tax on the privilege of doing business in the state
The tax base for the Commerical Activity Tax is:
a. gross receipts before cost of goods or other expenses attributable to the production of gross income are deducted
b. gross receipts after cost of goods only are deducted
c. gross receipts after cost of goods sold and other expenses attributable to the production of gross income are deducted
d. federal taxable income
a gross receipts before cost of goods or other expenses attributable to the production of gross income are deducted
The following are credits are allowed toward calculating commercial activity tax except:
a. job creation tax credit
b. technology investment tax credit
c. job retention tax credit
d. credit for research and development loan payment
b technology investment tax credit
All business subject to the CAT are required to file returns within 40 days from the end of the month of each calendar quarter.
False
Any Ohio business with taxable gross receipts of $150,000 or more in a calendar year are subject to the commercial activity tax.
false
Out-of-state businesses are subject to the Commercial Activity Tax if:
a. have at least $150,000 in taxable gross receipts in Ohio
b. have any real or tangible personal property situated in Ohio
c. pay any employees working in Ohio
d. have at least 25 percent of their total property, payroll, or gross receipts in Ohio
d have at least 25 percent of their total property, payroll, or gross receipts in Ohio
Types of gross income subject to the CAT include:
a. interest income
b. dividend income
c. rental income
d. capital gains
c rental income
The corporate franchise tax phase-out does not apply to:
a. businesses with gross receipts over $1 million
b. securitization companies
c. any business with unused net operating losses
d. any business which used the net worth method to calculate CFT
b securitization companies
Examples of taxing jurisdictions with regard to the Tangible Personal Property Tax include all of the following except:
a. counties
b. school districts
c. internal revenue service
d. townships
c internal revenue service
Which of the following is not required possible license for various vendors?
a. delivery vendor's license
b. transient vendor's license
c. service vendor's license
d. wholesale vendor's license
d wholesale vendor's license
An Ohio Vendor may file and submit sales tax either by mail or electronically.
False
In addition to sales of inventory, certain services may also be subject to sales tax.
True
Which of the following would not be subject to collect sales tax?
a. tow truck driver
b. tax preparer
c. tattoo artist
d. dry cleaner
b tax preparer
Which of the following is exempt from sales tax?
a. drive-through fast food
b. dine-in fast food
c. food served at a Bed & Breakfast
d. soft drinks purchased at a convenient store
a drive-through fast food
Internet purchases are not subject to Ohio sales tax if the product is shipped from a non-Ohio location.
False
Most regular, delivery, and service vendors must file and pay sales tax.
a. monthly
b. quarterly
c. semi annually
d. annually
a monthly
What day of the month following the vendor's reporting period is the sales tax return and filing payment typically due for most vendors?
a. 10th
b. 15th
c. 23rd
d. 30th
c 23rd
When a buyer claims to be exempt from sales tax, what documentation is required by the seller?
a. purchase order proving the items are for resale
b. letter from the county auditor
c. exemption certificate from the state
d. letter of intention of use of the goods
c exemption certificate from the state
Who is not authorized to levy additional sales and use taxes?
a. states
b. counties
c. transit authorities
d. vendors with physical locations within the state
d vendors with physical locations within the state
Real property taxes are assessed by:
a. internal revenue service
b. state of Ohio department of taxation
c. auditor of the county in which the property is located
d. treasurer of the city in which the property is located
c auditor of the county in which the property is located
The homestead exemption shields up to $25,000 of the value of an eligible homestead from property taxation if:
a. The homeowner earns $26,200 or less
b. the homeowner is 65 years old or older
c. the homeowner becomes temporarily disabled
d. the homeowner is a farmer
b the homeowner is 65 years old or older
Real estate taxes are determined by:
a. county auditor
b. Ohio department of taxation
c. original purchase price of the home
d. appraisal based on the mortgage balance on the home
a county auditor
Real estate taxes are based on an assessment when a home is purchased and may not be adjusted while ownership remains unchanged.
False
The Ohio "net taxable estate" calculation mirrors the federal net taxable estate computation. The deductions allowed from the gross estate for resident estates include all except the following:
a. marital deduction
b. outstanding liabilities against the estate property at the time of death
c. property to be distributed to beneficiaries per the decedent's will
d. charitable contributions
c property to be distributed to beneficiaries per the decedent's will
The alcoholic beverage tax is a flat rate applied to manufacturers, importers, or wholesale distributors of alcoholic beverages no matter the form (i.e., beer, wine, bottled mixed beverages).
False
Cigarettes and tobacco products should be stamped indicating that the tax has been paid. Where do cigarette wholesale dealers purchase such stamps?
a. treasurer of state
b. department of alcohol, tobacco, and firearms (ATF)
c. Ohio department of taxation
d. post office
a treasurer of state
The motor vehicle fuel tax is a tax that is:
a. applicable to only commercial vehicles operating on Ohio's roadways
b. applicable to all commercial and noncommercial vehicles
c. an incentive to encourage consumers to purchase hybrid vehicles
d. a tax paid by wholesalers and refiners who distribute fuel in Ohio
d a tax paid by wholesalers and refiners who distribute fuel in Ohio
Public utilities liable for the public utilities tax would not be subject to the commercial activity tax.
True
Which is a tax imposed for the brivilege of doing business in Ohio?
a. commercial activity tax
b. public utility excise tax
c. both a and b
d. neither a and b
