Question

Ohio Business Income Deduction

Forum|Forum|6 years ago
February 14, 2020
1 reply
0 views

The capital gains on the sale of my rental apartment in March 2019 was $300,000. Can I list this $300,000 as Other Business Income on my Ohio taxes?

A

AlanT222

Unfortunately you cannot list it as other business income on your Ohio taxes. If it is a capital gain on your federal then it is a capital gain on your Ohio.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Hal_Al

Employee

Yes, you can. That qualifies, since it was a gain on the sale of business property (rentals count) In the interview, federal schedule D will be a choice. If you show a loss on Federal Schedule E, you must show that as business income (loss) too, effectively reducing the BID.

See line 3 on the form

https://www.tax.ohio.gov/portals/0/forms/ohio_individual/individual/2019/Schedule_ITBUS_FI.pdf

From the Ohio instructions:

Line 3 - Schedule D, Capital Gains and
Losses
Enter capital gains or losses reported
on federal Schedule D that qualify as
business income. Do not include gains or
losses from the sale of property that was
not used in a trade or business, as well
as gains or losses from the sale of the
ownership interest in a business itself.

There is a $250,000 maximum BID limit