Ohio tax 2b

  1. identify pass through entities
    • S-Corp, partnership or LLC treated as partnership or s corp for fed purposes
    • does business in Ohio or have nexus with Ohio subject to tax
  2. basic tax calculation on form IT 4708
    • income for Ohio gives Ohio taxable income
    • times tax rate (.0624)
    • minus PTE credit
    • gives tax after credits
  3. form IT-1140 in comparison to Form W-2
    similar to form W-2 in that it is a form filled out of the amount of tax that has been withheld
  4. types of business taxes in ohio
    • sole proprietor
    • partnership - LP and LLP as well as general
    • corporation
    • s- corp
    • LLC
    • business trust
  5. Ohio business gateway function and purpose
    • provides electronic means of registering as taxpayer and filing returns for CAT, sales tax, employer withholding, unemployment compensation premiums & municipal income taxes, also will accept apps for vendor's licenses & electronic payment of taxes due
    • designed to make life easier for Ohio business owners
  6. items deductible or not deductible for federal vs. municipal taxes
    • not deductible for municipal - capital losses & 1231 losses, 5% of intangible income, taxes based on income, guaranteed payments to partners, charitable contributions deducted above corp limits, qualified retirement, health & life insurance plans paid on behalf of owners/owner employees, adj for specially allocated expenses
    • not taxable - capital and 1231 gains, interest earned or accrued, dividends, income from intangible sources
  7. What is municipal tax
    income tax paid to cities and villages in Ohio
  8. who and what income is subject to municipal tax
    everyone in the city limit on wages, salaries, commissions, and other compensation of residents and workers in city, net profits due to activities with municipality
  9. who uses form BR-25
    associations, corporations, estates, trusts, grantor trusts that derive income or losses in Ohio
  10. allowable rates for municipal income taxes with/without voter approval
    up to 1% without voter approval
  11. What is CAT and who is subject to the tax
    • what - tax on privilege of doing business in Ohio
    • who - corporation for profit, own capital or property, hold charger or certification of compliance or have nexus with Ohio
  12. When is the CAT tax due
  13. CAT tax base and credits
  14. what types of income are subject to CAT
  15. state business taxes phasing out
  16. What is corporate franchise tax based on
  17. Administer PPT
  18. types of entities requiring vendors license
  19. submission of sales tax
  20. recording keeping and maintenance for sales tax
  21. who is subject to sales tax
  22. out of state sales and effect on sales tax
  23. frequency of sales tax filing and remittance
  24. tax exempt documentation requirements
  25. who levies sales tax
  26. assessment of real property taxes
    • all real property owners who are not exempt
    • taxable value is 35% of true value except land devoted to agricultural use
    • 1/2 due by Jan. 31 and rest due June 20
  27. homestead exemption
    • for people that are 65+ years of age, permanently & totally disabled, or surviving spouse of someone who received exemption at at least 59
    • there is a grandfather clause to protect homeowners that had homestead but older version is better for them
    • receives credit of 25,000 off of property value
  28. deduction at arriving "net taxable estate"
    Gross estate less marital deduction, funeral expenses and cost of administering the estate, outstanding and unpaid claims against the estate at time of death, unpaid mortgage or other debt in gross estate valuation and charitable contributions
  29. alcohol beverage tax and who is liable
    • tax on beer, mixed beverages, wine and cider at different rates
    • exemption for clergy for sacramental wine and sale made to federal government, taxpayer making sales of alcoholic beverages for resale out of ohio, licensed Ohio brewer who does not produce more than 31 million gallons in a calendar year, licensed wine producer that produces less than 500,000 gallons in calendar year
    • paid by manufacturers, importers and wholesale distributors who sell and distribute in and to Ohio
  30. tax paid stamps on cigarettes and tobacco products
    • paid by wholesale dealers, persons who have in their possession on which has not been paid, and distributors
    • department of taxation administers and collects both state tax and permissive taxes
    • stamps are purchased by wholesale dealers from treasurer of state
  31. motor vehicle fuel tax and who is liable
    • paid by dealers who distribute fuel in Ohio
    • applies to gallons of gasoline, diesel fuel and special fuels
    • exemption is purchasers who do not use fuel to operate vehicle on highway or waterway (receive refund of tax paid), local transit authority, (pays only 1 cent per gallon) school districts, joint vocational schools and educational service centers (receives refund of tax over 22 cents per gallon)
  32. public utilities tax vs. CAT
    • both are tax on doing privilege of doing business in Ohio, measured by gross receipts
    • public utilities tax is on utilities that are natural gas, heating, pipeline, telegraph, water transportation & water works companies and do not pay CAT
Card Set
Ohio tax 2b
ohio tax 2b