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Screen OHBUS - Ohio Business Income and Apportionment (1040)
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Use this screen to complete Form IT BUS, Schedule of Business Income and Form IT NRC, Ohio Nonresident Credit Calculation, Section III - Business Level Income & Apportionment. Each unit of this screen generates 1 unit of Form IT NRC, Page 3, unless you mark this unit for exclusion.
State
Enter the state ZIP Code for this activity. If the ZIP Code is
OH
, the Ohio apportionment ratio is set to 1.000000; if the state ZIP Code isn't OH
, the Ohio apportionment ratio is set to zero (0.000000).Create a unitary group or other business with no federal activity
Enter
X
to indicate that no data transfers from the federal 1040 return. This field is marked when a new screen unit is created for reporting miscellaneous business income or combining multiple activities into a unitary group, or separating income entered as joint in federal screens to taxpayer and spouse amounts for reporting on Schedule NRC page 2.Do not apportion this income
Enter
X
to exclude this activity from Form IT NRC. When marked, the application ignores all other information in this screen. For example, select this field to treat multiple units of rental activity as a unitary group. In this scenario, create 1 unit of this screen for the group and exclude the individual rental units.Eligible for business income deduction
Enter
X
to calculate Form IT BUS - Business Income Schedule, for this activity. Form IT NRC will need to be calculated for each pass-through entity in which the nonresident taxpayer has an ownership interest. The business income apportioned to Ohio that's calculated on Form IT NRC is used to complete Form IT BUS.Schedule K-1 attached \ … \ Ohio apportioned income
When Schedule K-1 is attached to the return as a PDF, select this field and enter the 3 amounts needed for Form IT NRC Nonresident Credit Calculation, Page 2. Form IT NRC, Page 3, won't be used to calculate the amounts from this unit and won't print. Enter all other information needed to calculate Schedule IT BUS as needed.
Business Adjustments
Use this section to enter income and deductions for Form IT NRC Section III (Part B). Information in this section transfers from federal Schedules C, E, and F, Form 4835, and the K1 Reconciliation Worksheet.
Net interest income and dividend income
Enter net income from interest and dividends, except as reported elsewhere on Form IT NRC. This amount transfers from the Schedule B section of the federal K1 Reconciliation Worksheet. You can make adjustments as needed to reflect the amounts included in the federal AGI.
Ordinary income (loss) from trade or business activities
Enter income or loss from a trade or business, except as reported elsewhere on Form IT NRC. This amount transfers from the Total Schedule E, Page 2 field in the federal K1 Reconciliation Worksheet. You can make adjustments as needed to reflect the amounts included in the federal AGI.
Net capital gain (loss) and other gain (loss)
Enter net capital gain/loss combined with other gain or loss, except as reported elsewhere on Form IT NRC. This amount transfers from the Schedule D section of the federal K1 Reconciliation worksheet. You can make adjustments as needed to reflect the amounts included in the federal AGI.
Net income (loss) from pass-through entities, rental activities and net royalties
Enter net income/loss from rents and royalties, except as reported elsewhere on Form IT NRC. This amount transfers from federal Schedule E, federal Form 4835, and the net royalty income/loss from the Total Schedule E, Page 1 field in the federal K1 Rec Wrksht. You can make adjustments as needed to reflect the amounts included in the federal AGI.
Guaranteed payments and/or compensation from each pass-through entity
Guaranteed payments to partners are considered business income if the taxpayer has a 20 percent direct or indirect ownership. When ownership percentage is less than 20 percent, the amount isn't reported on Form IT BUS. You can make adjustments as needed, except if reported elsewhere on Form IT NRC.
Other items of income (loss) from a K1 and/or federal conformity adjustments
Enter other items of income/loss from a K1, gain/loss reported on Federal 4797 and federal conformity adjustments. See instructions for details on the types of income to enter here for business income apportionment, or to be entered in the
OHNonBus
screen for nonbusiness income allocation.Revised Code section 5747.212 business income or (loss)
Enter the total and Ohio source amounts. Use the
Ohio Source
statement to enter detailed calculations of the state portion.Apportionment Ratio
Apportionment for business activities with both OH and Non-OH activities is needed per Rev. Code sections 5747.20 through 5747.231. If not using necessary apportionment factors of property owned, yearly rent times 8, payroll, and/or sales, complete the statement asking deviation from statutory provisions.
Apportionment for business income
In the statements, enter the total and OH source amounts for one or more of the categories. The OH source amount should not exceed the corresponding amount from total sources. The resulting calculation is an OH apportionment ratio value between zero (0.000000) and one (1.000000).
Ohio apportionment ratio (Force)
Use this field to force an Ohio apportionment ratio different than the calculated value. The value will need to be between
0.000000
and 1.000000
. Also, complete the statement requesting deviation from statutory provisions, detailing how this ratio is calculated and giving a reason why the apportionment schedule should not be used.Ohio percentage from federal allocation, displayed as a ratio
This field shows the OH percentage from
Allocation
on the federal C
, Rent
, F
, 4835
, K1
, or K1T
screen, if any. The percentage is converted to a ratio between 0.000000
and 1.000000
. When the apportionment statement isn't completed and the apportionment ratio isn’t forced, then this ratio is used if greater than zero.Request for deviation from statutory allocation and apportionment provisions
If not using the required apportionment factors of property owned, yearly rent times 8, payroll, and/or sales, complete this statement requesting deviation from statutory provisions. Enter a reason why the statutory allocation and apportionment provisions should not be followed for the activity and enclose a detailed alternate calculation.
Apportionable Depreciation Adj from OH Schedule A
Add adjustments of I.R.C section 168(k) and qualifying 179 expense (Force)
Enter the bonus depreciation add-back adjustment for this activity’s assets placed in service this year, except as reported elsewhere on Form IT NRC. The OH Bonus Depreciation Adjustment Worksheet shows the total adjustment for all activities and can be used as an aid for proration between activities.
Deduct adjustments for the depreciation expenses added back in the prior five years (Force)
Enter the bonus depreciation deduction adjustment for this activity’s assets placed in service in the preceding 5 years, except as reported elsewhere on Form IT NRC. The Ohio Bonus Depreciation Adjustment Worksheet shows the total adjustment for all activities and can be used as an aid for proration between activities.