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Form FT 1120C Fillable Ohio Corporation Franchise Tax (Combined Report) Worksheet
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taxpayer is a corporation subject to the franchise (: 2) Unchecked (: 3) Unchecked (: Yes) Unchecked (1996) 75 Ohio St 3d 125 (a) Owned (average cost) (combined) line 7 and (2) the taxpayer s related entity and related (Reset Form) Reset Form (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (whether or not the corporations actually 1 000000 1120 Schedule 1120 Schedule B 2 line 5) 1120 Schedule G 1120 Schedule G enter the greater of line (h) or 1120 Schedule G line (j) If the total on line (b) is more than $5 000 divide $5 000 by the total and enter here 1120C 1120C 1120C 1120C contains limitation schedules to ensure that the litter tax does not exceed $5 000 for the combined group 1120C Corporation 1120E) and the request(s) for extension (Ohio 1120ER and FT 1120EX) and (2) pay the estimated tax due by the dates stated in general instructions 10A 1120VL) 2013 Corporation Franchise Tax (Combined Report) 2013 Instructions See Ohio Revised Code Section (R C ) 5733 052 5733 01(G) and 5751 01(E) 5733 04(I)(7) and (I)(8)) 5733 052(B) and A line 10 A line 7 a timely above when such affiliates are engaged in activities (vi) certain affiliates of insurance companies when Add lines 5 and 6 Add lines 9 and 10 each column Add the weighted ratios on lines 14 15 and 16 each column Enter (combined) line 6 and Schedule additional pages if needed to reflect the number of members Additions: Adjustment for federal targeted jobs credit or work opportunity credit Adjustments Adjustments for Corporations After completing the combined report each taxpayer on its own separate franchise tax report Ohio form 1120 the after the elimination of intercorporate transactions between corporations in the combined group Agency All Ohio taxpayer corporations that as of Jan 1 of the report year meet the ownership or control requirements to allocable excess related entity loss Allocable excess related entity states exceeds total loss) Allocable excess related exceeds total gain) Allocable Income Everywhere Allocable income everywhere (Schedule C (combined) Allocable portion of line 3 Also analyze the related entity losses deducted from each Amend a Amend a Combined Amend a Combined Franchise Amount claimed as a credit for taxes paid by a qualifying pass through entity Amount from each corporation s Ohio form FT 1120 Schedule B 4 line 23 An election to combine may not be changed by such taxpayers either in amended reports or reports for future years without the written consent of the tax commissioner and 10B and earlier qualifying purchases for which the taxpayer claimed a credit on earlier reports and miscellaneous federal tax adjustments and the commercial activity tax phase in Any request for Any request for deviation from the statutory allocation provisions must be in writing Applicable Apportionable excess related entity gain (if gain taxed in all states exceeds total gain) R C 5733 054(A) Apportionable excess related entity loss (if loss taxed in all states exceeds total loss) R C 5733 054(B) Apportionable income (line 3 minus line 4) Apportionable related entity gains (losses) (Line 3 minus line 4 ) Apportioned Income Apportioned income (line 7 column 1 X line 8 each column) As a result of the Ohio corporation franchise tax phaseout asset Avoid Ohio Corporate Tax Report Required 2000 and revised Taxpayers requesting B 3 (combined) line 21 Each taxpayer must then compute its own taxable income and net income base tax Each member of a combined operating loss deduction because Ohio taxable income on its 1120 Each member of the must make payment with an overpayment if the corporation Base income (line 1 plus line 2(r)) booklet Case No 90 M 1443 (Dec 4 1992) Case No 90 M 1443 Dec 4 1992 Caution: Caution: Caution: Most corporations are not subject to Changing the Election column (2) We refer to the corporation shown combined report to the franchise to attach this combined COM Nontaxpayer COM Request for Permission to File or COM Request for Permission to File or to combination is timely elected under R C 5733 052(B) if any member of the combination has complied with all of the franchise tax report deadlines even if other members have not so complied Thus a taxpayer that fails to pay its estimated tax by the required dates and fails to separately combination must complete Ohio form FT Combined Corporation Franchise combined franchise tax group may not change the group with respect to amended written consent of the tax commissioner combined report (see R C 5733 06(F)) Each taxpayer s Ohio taxable income that exceeds the prorated amount is taxable at the higher franchise tax and litter tax rates Related taxpayers must prorate the $0 to $50 000 bracket on Ohio form FT Combined Totals Combined Totals commissioner s permission to Completing the Form Contributions to an individual development account program corporation s federal taxable income on lines 1 and 2 above For each related entity loss deducted determine the entity loss if applicable (Excess related entity by which the loss actually allocated or apportioned to other states that impose a tax on or measured exceeds the total loss from the sale or corporations after the due date of the taxpayer s report if another corporation in the combined group has timely paid its estimated tax has timely corporations included in a combined report must compute income in the same manner as if they were taxpayers costs paid to related members Credits Separately Determined and Used Deductions: Depreciation expense adjustment from Schedule B 4 line Depreciation expense adjustment from Schedule B 4 line 19 miscellaneous federal tax adjustments Dividends received (Internal Revenue Code [I R C ] 243 and Each taxpayer in an elected combination must have income other sources within Ohio (either positive [loss]) Income from sources would be allocated or apportioned included in a combined Those taxpayer groups to combine in prior tax delete taxpayers other than dividend Each taxpayer s proportionate share of the combined ratio Divide line 8 each column 18 Elected Combination Enter each corporation s Ohio apportionment ratio from Schedule D (combined) line 17 Enter in column (1) the sum of the amounts in columns (2) through (5) Enter on line 12 as a positive number each corporation s total apportionable excess related entity loss Enter in column (1) the sum of the amounts in columns (2) through (5) Enter on line 13 each corporation s total apportionable excess related entity gain Enter in column (1) the sum of the amounts in column (2) through (5) Enter on line 19 as a positive number each corporation s total Enter on line 20 each corporation s total allocable excess related Enter the lesser of (a) line 14 (combined) or (b) the line 6 (combined) times line 8 (combined) entity gain Exceptions to Franchise Tax Phase Out f Distributive or proportionate share of pass through entity expenses Federal employer I D number Federal taxable income (IRS form 1120 line 28) fi le Ohio form FT fi ling fi nancial figures for each individual corporation and file a combined franchise tax report file a combined report with corporations file a combined report) file as members of a combined report must share one $0 to $50 000 taxable income bracket to which the 5 1% rate applies Such related taxpayers must share the $0 to $50 000 taxable income bracket regardless of whether those related taxpayer corporations actually file in combination with other file its request(s) for extension by the file Ohio form FT file the Declaration of Estimated filed for the previous tax year does the combined report for the current tax year exclude any members that were included in the combined report year? (In answering this question do not consider corporations that franchise tax because of the phase out and do not consider corporations income or ownership requirements for a combined report as of filed for the previous tax year does the combined report for the current tax year include any members that were not included in the combined report year? filed its franchise tax report in combination with the taxpayer See filed its request(s) for extension and has timely filed report filed within the time prescribed by R C 5733 02 as extended under R C 5733 13 A filing and payment deadlines is subject to the applicable penalty and interest charges filing of the 2009 franchise tax report (based on the taxable year ending in 2008) filing this report See instructions financial institutions (ii) Follow the Schedule B 3 Follow the Schedule B 3 line 13 instructions contained in the Ohio corporation franchise tax report instruction booklet but do not determine the R C 5733 055 limitation on a company basis following companies remain subject to the franchise tax for tax years 2010 and thereafter: (i) following year following: (1) the taxpayer s apportioned income from Schedule B For all but the companies described below the For franchise tax report years 2007 and thereafter only the grant is available because the taxable years for all taxpayers for all such report years will end after the June 30 2005 effective date For new manufacturing machinery and equipment purchased after Dec 31 2000 a qualifying controlled group must compute the 7 5% 13 5% manufacturer s credit (grant) on a consolidated basis and for new manufacturing machinery and equipment purchased before Jan 1 2001 a qualifying controlled group can elect to compute the 7 5% 13 5% manufacturer s credit (grant) on a consolidated basis See R C 5733 33(I) and 122 173(I) The term qualifying controlled group means two or more corporations that meet the R C 5733 052(A) ownership and control requirements to For purposes of determining net value of stock on the the taxpayer s separate company apportionment Schedule D 2 Ohio 1120 See R C 5733 05( For purposes of determining whether members of a combined group are required to pay by electronic fund transfer (EFT) group members must add together their tax liabilities after reduction for nonrefundable credits for the second preceding tax year If the combined group s aggregate tax liability after reduction for nonrefundable credits for the second preceding tax year exceeded $50 000 then for the current tax year each For taxable years ending on or after July 1 2005 the R C 5733 33 manufacturer s credit converted to a nonrefundable grant administered by the Ohio Development Services For taxable years ending on or after June 26 2003 all income gain loss and expense is presumed to be business income See instructions Compute each taxpayer s income allocable to Ohio on Schedule C form FT form FT Franchise franchise tax phase out was complete with the From each taxpayer s Ohio form FT from line (a) above on its separate Ohio form FT gain from the sale of Ohio public obligations holding companies (iii) bank holding companies (iv) savings and loan holding companies (v) affiliates of entities described in (i) through However each member of a combined report that fails to comply If a combined report was if negative enter in parentheses) If on Jan 1 of the tax year If the corporation is subject to the franchise If the denominator of any other factors must be proportionately of factors used is 100% apportionment ratio applies only to the net income basis If the members of the combined corporations please show report If the combined If the total on line (b) is not more than $5 000 enter each taxpayer s tier one litter tax If yes please Included in a Combined Franchise included in the combination income institutiontype instruction booklet Interest and Penalty; Estimated Payments Interest expense and intangible expense paid to related members R C 5733 04(I)(13) and 5733 042 Interest on Ohio public obligations and purchase obligations and Lead Corporation Lead Corporation Lead Corporation See Note below Less intercorporate sales liation Schedule line (i) but not more than $5 000 line 11 in the Ohio corporation franchise tax report instruction Line 14 Line 8 line instructions in the Ohio corporation franchise tax report instruction booklet For each corporation included in the combined report enter the line item amounts in the column for that corporation Enter in column Lines 1 2 4 6 and 10 Lines 12 and 19 Lines 13 and 20 Loss from the sale of Ohio public obligations may elect to combine net income with such other taxpayer corporations member adjustment from Schedule member must remit its payments by EFT member to a previously elected combination is a change in the combined The Tranzonic Companies and Subs v Tracy BTA most corporations are not subject to the franchise tax for tax years (report years) 2010 and thereafter Corporations that are not subject to the 2013 franchise tax (based on the taxable year ending in 2012) have Multiply amounts on line (a) by line (c) Enter here and on Ohio form FT Multiply line 16 by line 17 each Name of corporation Name of corporation Name of corporation Ending date of taxable year nancial Net adjustment to federal taxable income (line 2(g) minus Net everywhere sales Net income from an exempted investment in a public utility Net income from foreign sources (Ohio form FT Net interest from exempt U S obligations net interest income and net intangible income taxed by other states R C 5733 055 Net loss from an exempted investment in a public utility Net Ohio sales no report year 2013 franchise tax payment or Nonbusiness Note 1: Note 2: Note 3: Note: Note: obligation of each taxpayer s separate franchise tax report Ohio form FT of the new law Ohio apportioned income (line 5 column Enter each taxpayer s apportioned income on the taxpayer s Ohio apportionment ratio (Schedule D (combined) column) Ohio apportionment ratio (Schedule D (combined) line 17 each column) Ohio franchise tax I D number Ohio Income Requirement OTAS Ohio owned by an individual may elect to combine net income and brother sister taxpayer corporations owned by a parent corporation may elect to combine net income without inclusion of the parent corporation However where less than all eligible taxpayer corporations elect to combine net income the must include an explanation for the nonparticipation eligible taxpayer corporations Net worth is not member of a combined report must determine net worth base tax on its separate franchise Page 5 paid to losses incurred from transactions with and excess inventory Payment by Electronic Funds Transfer Payroll (line 3 each column divided by line 4 column 1) Payroll (multiply line 12 each column by Payroll everywhere Payroll Ohio Property (line 1(c) each column divided by line 2(c) column Property (multiply line 11 each column by 20) Property everywhere (a) Owned (average cost) Property Ohio Questionnaire (you must complete this schedule) Ratio Ratios (carry to six decimal places) Related entity 18 19 and amount on taxpayer s separate 1120 Schedule Related entity gains (losses) allocable to Ohio Related entity gains (losses) from sale of investments in stock or debt R C 5733 04(I)(12)(a) Related entity gains (losses) from sale of other intangible property R C 5733 04(I)(12)(b) Related Entity/Member Related members Rented (annual rental x 8) Report report is timely if it is requests a credit estimated tax required dates may nevertheless Required or Permitted Combination Rev 10/12 Rev 10/12 Page 2 Rev 10/12 Page 3 Rev 10/12 Page 4 Rev 10/12 Page 6 Review the instructions for Schedule B 3 Review the instructions for Schedule B 3 line 12 in the Ohio corporation franchise tax report instruction Also analyze the related entity gains added to each federal taxable income on lines 1 and 2 above For entity gain added determine the excess related applicable (Excess related entity gain is the the gain actually allocated or apportioned states that impose a tax on or measured Roxane Laboratories Inc v Tracy Sales (line 7 each column divided by line 10 column Sales (multiply line 13 each column Sales everywhere Sales Ohio Schedule B (Combined) Computation of Schedule B 3 (Combined) Schedule B 3 (combined) must be completed in accordance with the instructions below (see May 6 1992 franchise tax information release Schedule B 3 (combined) Related Entity and Related Member Schedule B 3 (Combined) Related Entity and Related Member Schedule C (Combined) Schedule D (Combined) Apportionment Ratio See R C 5733 04(M) See the department s information release entitled 482 Study: seeking to change their existing combination must separate Ohio form FT Sharing the $0 to $50 000 Tax Bracket; Litter Tax Limitation such affiliates are engaged in insurance type activities and (vii) securitization companies described in R C 5751 01(E)(10) See Tax (Combined Report) Complete Combined Report Schedules B B 3 C (everywhere) and D in columnar form showing the line item Tax (Ohio form FT tax for report year 2013 and if the taxpayer on Jan 1 of the tax year owns or controls either directly or indirectly more than 50% of the voting stock of one or more taxpayer corporations Tax Report Tax Report ) Complete Taxpayer Affi Taxpayers Taxpayers Seeking Taxpayers that elect to combine must do so in Taxpayers whose voting stock on Jan 1 of the tax year is more than 50% owned or controlled either directly or indirectly by another corporation or by related interests may also elect to combine net income that are not taxpayers must That is brother sister taxpayer corporations that provides for the credit specifically states otherwise each taxpayer in the combined group must separately determine and use any franchise tax credits to which the taxpayer is entitled The addition of a new The addition of a new member to a previously elected combination is a change in the combined group See the combined report s more than 50% ownership requirement is met (see Elected Combination paragraph above) the commissioner may require or permit a taxpayer and corporation to combine their net income (whether corporation is a taxpayer and whether or not the has income from sources within Ohio on a separate basis) the combined totals of each line item The deletion from the combination of a member that is no longer subject to the franchise tax because of the phase out is not a change in the election The department will require franchise tax and will pursue expanded combinations ascertains that the failure to combine of income fairly apportioned and allocated of ascertaining whether such income department will consider all The excess related entity gain adjustment is limited to that portion of each gain actually allocated to Ohio on line 10 or apportioned to Ohio on line 9 ) If an excess related entity gain is attributable to an apportionable gain the excess related entity gain is apportionable on line 13 The excess related entity loss adjustment is limited to that portion of each loss actually allocated to Ohio on line 10 or apportioned to Ohio on line 9 ) If an excess related entity loss is attributable to a loss that was allocated in whole or in part to Ohio the excess related entity loss is allocable on line 19 If an excess related entity loss is attributable to an apportionable loss the excess related entity loss is apportionable on line 12 The overpayment of one member cannot be netted against the balance due of any other member The proration however made applies The R C 5733 055 limitation is determined on a combined basis on line 15 Schedule B 3 (combined) corporation included in the combined report enter amount in the column for that corporation Enter sum of the amounts in columns (2) through The related member adjustments apply to all corporations that pay interest expense or intangible expense to certain related members the sum of the amounts of columns (2) through (5) the total gain from the sale or other disposition of the asset The Tranzonic Companies and Subs This is so even for the 1/7 amounts from 2005 Tier One Litter Tax Limitation Tier One Tax is Limited to $5 000 for the Combined Group Timely Election To avoid penalty and interest each member of a combined franchise tax report must: (1) separately and timely to both the franchise tax and the litter tax In addition Ohio Total (enter on Schedule B (combined) line 4) Total additions (add lines 2a through 2f) Total deductions (add lines 2h through 2p) Total everywhere Total of lines 12 13 and 15 Total of the amounts on line (a) Total Ohio Total related entity gains (losses) (Add lines 1 and 2 ) Tracy BTA Two or more corporations filing in Unless the statute Valuation limitation on gains (Ohio form FT Valuation limitation on losses (Ohio form FT Weighted Apportionment Weighted apportionment ratio with the