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Form IT 1140-Inst Fillable Pass-Through Entity and Trust Withholding Tax Return Instructions
(all forms fillable on Windows, Mac, Android tablets, and iPad using Adobe Reader XI)
1 FEIN of the qualifying pass through entity or trust All income that the qualifying pass through entity earns if the An investment pass through entity s items of income listed on Bank holding companies as defined in the federal Bank Holding Estates trusts and other pass through entities Federal interest income that under federal law is exempt from Financial holding companies as defined in the federal Bank Homeowners Loan Act that are engaging only in activities permissible institutions of higher education as defined in R C 3334 01(F)) Interest income from Ohio public obligations and Ohio purchase Magnetic media meeting the specifications that the IRS requires owns at least 50% of the entity s voting stock (corporations) Persons directly or indirectly owned by one or more insurance Persons other than persons held pursuant to merchant banking Persons that solely facilitate or service one or more securitizations Savings and loan holding companies as defined in the federal Tax Credits Available to Certain Investors and Beneficiaries Taxable Year Beginning in 2013 Who Is a Qualifying Investor? on page 3 of these instructions) can $1 000 (see Schedule B line 9 and Schedule D line 3) $1 000 (see Schedule B line 9 and Schedule D line 3) The tax is (2)(a) (4) rents and royalties from real property (5) receipts from the sale (6) receipt from the sale of services and other receipts not expressly (defined below) (ii) irrevocably acknowledges that it has nexus (discussed on page 4) to individuals who are nonresidents of Ohio (i) directly or indirectly owned by one or more fi nancial institutions (i) the pass through entity is an equity investor in another (ii) estates domiciled in Ohio (iii) nonresident individuals on (ii) the Ohio form IT 1140 is due April 15 2014 The pass through (iii) makes a good faith and reasonable effort to comply with both (including customer transportation) has been completed See (IT 1040) along with any other federal add backs For Schedule (see Tax Credits Available to Certain Investors and Beneficia *The phase out tax rate does not apply and the 8 5% tax rate 0% (0% x 8 5%) 1 7% (20% x 8 5%) 1 Investors that are pension plans or charities (investors that are 10 Investors that are themselves qualifying pass through entities if 1041 or IT 4708) a copy of the IRS form K 1 indicating the amount 11 2003 the cost of performance provision is no longer the law 1120FI) or with the Ohio franchise tax request for refund (Ohio form 1140 with the Ohio Department of Taxation no later than one year after 1140 would be due Sept 15 2014 (five months later than the April 1140ES payments to Ohio form IT 4708 ( Composite Income Tax 1140ES Worksheet #3 Ohio form IT 1140ES and the worksheets 13 Investors that are either trusts or funds whose benefi ciaries are 14 Investors that are corporations paying the Ohio corporation 15 2014 (a five month extension) In this example the Ohio form IT 15 2014 unextended due date) 15 Investors that are investment pass through entities (defined 179 over (ii) the amount of depreciation expense directly or indirectly 2 Investors that are publicly traded partnerships (investors that 2 Name of qualifying pass through entity or trust 2009 and thereafter 2013 exceeded $10 000 and (ii) the sum of the adjusted qualifying 2013 the pass through entity elects to file Ohio form IT 4708 for the 2013 year (this return would be due April 15 2014 not April 15 2013) For the fiscal year beginning Feb 1 2013 and ending Jan 2015 Ohio form IT 4708 This return would be due April 15 2016 3 4% (40% x 8 5%) 3 Investors that are colleges or universities (investors that are 3 Name of a qualifying investor or qualifying benefi ciary 3 penalites and interest for details ) 31 2014 the entity elects to file Ohio form IT 1140 for 2013 This 4 Investors that are public utilities in Ohio and are required to 4 Social Security or FEIN number of the qualifying investor or 4485 Northland Ridge Blvd 1st Floor 4708EXT payments to Ohio form IT 1140 If the pass through entity 5 1% (60% x 8 5%) 5 Investors that are insurance companies fraternal corporations 501(c)) 501(c)); 5725 01(B) 5733 051 (see R C 5733 05(B)(2)) 5733 40(A)(7) 5747 01(A)(20)(a)) 5747 01(A)(21)(a) and 5747 01(S)(14) 5747 01(I) and (N); OR 5747 059 also provides a similar credit for nonresident individual 6 8% (80% x 8 5%) 6 City of the qualifying investor or qualifying beneficiary set forth 6 Investors that are dealers in intangibles as defined in R C 7 Investors that are real estate investment trusts regulated investment 8 Nonresident individuals on whose behalf and nonresident estates 8 ZIP code of the qualifying investor or qualifying benefi ciary set 9 Investors that are financial institutions liable for the corporation 9 The amount of tax credits that will pass through from the 90% of the total Ohio tax due To make an extension payment a day that is different than the last day of the investee qualifying a failure to pay timely penalty will apply if (i) less than 90% of the a label containing the following information in large print: (i) the a manufacturer or merchant who operates its own fleet A paper copy of pages 1 and 2 of IRS schedule K 1 which the A qualifying pass through entity is each S corporation partnership A qualifying trust is each trust that meets the following three A The entity tax does not apply to any pass through entity to accompanied by payment of any additional tax and interest If the According to R C 5733 40(I) a qualifying investor is any qualifying Accordingly each qualifying pass through entity or qualifying add back on the shareholder s Ohio individual income tax return Add lines 1 (c) 2 and 3 Enter ratio here and on page 1 and on Add lines 1(a) and 1(b) for Within Ohio and Total Everywhere additional qualifying investor or qualifying beneficiary If you use Adjustments available to taxpayers are (i) the subsequent years adjustments to income and deductions) realized by an S corporation agrees that the investor has nexus with Ohio and is subject all attachments after the return All qualifying pass through entities and qualifying trusts must complete All types and classifications of income and gain attributable to allowances from sales everywhere allowed to the taxpayer under I R C 179 in effect on Dec 31 2002 amended return reflects an overpayment the amended return must amount of payment(s) previously claimed for this taxable year amounts for the taxable year beginning in 2014 will exceed $10 000 Amounts Not Subject to a Tax on or Measured by Net Income amounts that the qualifying trust pays to the qualifying trust s amounts when arising from transactions activities and sources in An employee or beneficiary of or investor in a qualifying an equity investor in any qualifying pass through entity in which An investment pass through entity is a pass through entity an urban job and enterprise zone facility for which the pass through and (ii) depreciable assets that are owned by pass through entities and (iv) the domestic production activities deduction allowable to and 5747 231 and allowances received by the purchaser in Ohio In the case and applies to amended returns that reflect overpayments as well and Benefi ciaries below) and expense is presumed to be apportionable business income and give the communication assistant and pass through entity owners who are affected by the entity tax and payment requirements for pass through entities and trusts and penalties As such interest will apply to all late payments and and sales See R C 5733 402 and Social Security number or federal employer identification and Social Security number or FEIN for each investor in and tangible personal property owned or rented and used in the and Trust Withholding and trusts) [R C 5747 01(I) and (N)] or corporations that are and used in the trade or business everywhere during the taxable year and used in the trade or business in Ohio during the taxable year and/or the I R C 179 amount generated by the investee passthrough annum for 2013 and 3% per annum for 2014 another entity if the person another pass through entity must apply the aggregate (conduit) theory another pass through entity or trust to the qualifying pass through Any entity treated as a disregarded entity for federal income tax any of its income to any of its beneficiaries who are individuals any) paid for the taxable year even if the tax is paid or if the applicable for the entire taxable year: applicable to taxable years ending on or after June 26 2003 Application fees applies to the following qualifying investors: apply some or all of those Ohio form IT 4708ES payments to satisfy April 2004 information release entitled Sales Factor are not full year Ohio resident taxpayers (individuals estates and are on our Web site at tax ohio gov are partnerships with equity securities registered with the U S are situsable to Ohio in the proportion to the purchaser s benefi t with as to amended returns that reflect underpayments If the amended Assembly in HB 365 and information releases 2002 02 and 2002 01 at tax ohio gov) Enter on Schedule A line 2 any interest penalty authority under 12 U S C 1843(k)(4)(H) or 12 U S C 1843(k)(4) authorize us to request this information We need your Social B Neither the entity tax nor the withholding tax applies to an investment backed by the right to receive payment from the asset or assets based on the right to use the property in Ohio be accompanied by a statement that sets forth the full and complete Because of a recent amendment to R C section 5701 11 there are Because we require you to provide us with a Social Security begin claiming the related subsequent years deduction until the first beginning in Beginning in 2014 below ) but only if the investment pass through entity provides beneficial corporations bond investment corporations health beneficiaries included in this return who are nonresident individuals beneficiaries the pass through entity s or trust s proportionate share BTA Case No 86 C 1024 June 2 1989 business in Ohio can be used This applies to the 1/2 1/5 or 1/6 business of insurance in this state and (ii) are paying the Ohio but the service performed outside Ohio is incidental to the recipient s by accessing the department s Web site at tax ohio gov Click by Amended Substitute House Bill 95 125th General Assembly by intangible assets and having for its taxable year at least 90% By Internet By Phone by sections 5747 40 to 5747 453 of the Revised Code The by the Ohio Development Services Agency by the pass through entity As used below the term compensation by the pass through entity s is valued at eight times the annual rental C An equity investor (subsequently referred to as a deemed investor ) calculated as follows: Calculating the Tax can file either Ohio forms IT 1140 or IT 4708 All other qualifying Caution: The IRS informs us of all changes it makes to federal claim an income tax or franchise tax credit based upon the qualifying Code; AND Columbus OH 43218 2382 Columbus OH 43229 6596 companies but only if those persons (i) are authorized to do the companies or real estate mortgage investment conduits companies or real estate mortgage investment conduits; Company Act company paid on behalf of this pass through entity or trust company treated for federal income tax purposes as either a Compensation is paid in Ohio to any employee of a common or contract compensation paid in Ohio to certain specified new employees at Compensation paid in Ohio to employees who are primarily engaged compensation paid in this state during the taxable year by the passthrough Compensation that an S corporation paid to any shareholder Completion of Schedule E and additional sheet(s) if necessary comply with all of the corporation franchise tax reporting and composite income tax the pass through entity or trust can elect to connection with the production of nonbusiness income allocated Consent fees Consistent with the franchise tax rate phase out the tax rates applicable constitutes delivery to the purchaser in Ohio and direct delivery Constitution of the United States the Constitution of Ohio or any Construction in progress contract or common carriers Thus without approval by the tax commissioner corporation franchise tax phase out corporation franchise tax phase out* corporation s property corporations) cost average value Average value is determined by adding Credits Available to Certain Investors and Beneficiaries below) D calculations only the add backs coming from the entity doing day following the 15th Late payments of estimated tax are subject day of January of the calendar year immediately following the defined on Dec 31 2002 were $225 000 or more In each of the definition of investment pass through entity Definition of owned for this purpose: generally a person owns Definition of securitization for this purpose: transferring one or Department of Department of Taxation the appropriate income or franchise tax depreciable assets acquired by the taxpayer s disregarded entities depreciation and/or I R C 179 depreciation; AND (ii) because depreciation deduction discussed above (ii) miscellaneous federal depreciation expense claimed for the taxable year Qualifying I R C 179 depreciation expense is the excess of (i) the amount of depreciation depreciation expenses deduction as well determination of the federal change developer) (3) rents and royalties from tangible personal property has the right to use the property in Ohio then the receipts from direct ownership in the investment pass through entity Thus disposal of intangible property other than trademarks trade disposal of tangible personal property or real property where that Disregarded entities and qualifying subchapter S subsidiaries dissolution termination or bankruptcy of a qualifying entity distributive shares of income and gain from other pass through Divide Within Ohio payroll by Total Everywhere payroll to arrive at Divide Within Ohio sales by Total Everywhere sales to arrive at the Dividend income Dividends; dividing the amount Within Ohio by the Total Everywhere amount do not exceed 5% of the pass through entity s profit Do not include in Within Ohio but do include in Total Everywhere Do not include in Within Ohio but do include in Total Everywhere the does not discharge a responsible trustee s fi duciary s offi cer s double the interest charged The penalty will not apply if the entity due and attach Ohio form IT/SD 2210 to the return due date due date to the date of payment The interest rate is 3% per Dupps Co v Lindley (1980) 62 Ohio St 2d 305 during the pass through entity s taxable year Furthermore for duties on a motor vehicle in more than one state in the same ratio by E mail Us Instructions Each deemed investor s portion of the qualifying pass through Each qualifying pass through entity (see What Is a Qualifying either the recipient s base of operations or if there is no base of end For the fiscal year beginning Feb 1 2012 and ending Jan 31 engaged in activities permissible for a financial holding company Enter on Schedule A line 9 any interest and penalty due (See page Enter the average value of all the pass through entity s real property and Enter the average value of the pass through entity s real property and Enter the ratio of property Within Ohio to Total Everywhere by Enter the total amount of the pass through entity s compensation Enter the total of gross receipts from sales not excludable from the Enter the total of such includable gross receipts less returns and Enter the value of the pass through entity s real property and tangible entities Entities having no qualifying investors (see Who is a Qualifying Entities that are real estate investment trusts regulated investment entity (hereinafter referred to as the investing entity ) if entity and each qualifying trust with this return the qualifying K 1 entity and the denominator of which is the total compensation entity can defer making the 2/3 5/6 or 6/6 add back entity distributive shares of income and (ii) trust distributions entity does deduct the investee pass through entity s loss and does entity does not deduct the loss passing through this investor passthrough entity earns or receives from all sources reduced by entity files its Ohio amended return within one year of the final entity has received a Tax Incentive Qualifi cation Certifi cate issued entity having control or supervision of or charged with the entity investors listed: entity is a qualifying investor then the investee qualifying entity multiplied by (ii) the percentage of the deemed investor s entity obtains from the IRS an extension of time to file until Sept entity Of course this investor pass through entity cannot entity or qualifying trust (and then passes on to the qualifying entity or qualifying trust paid (net of refunds shown on entity s adjusted qualifying amount will be (i) the adjusted entity s calendar or fiscal year; Ohio form IT 4708 is based upon entity s includable business income receipts in Ohio during the taxable entity s or trust proportionate share of tax Furthermore this entity s profits apportioned to Ohio (see Who is a Qualifying Investor? entity s taxable year (see R C 5733 042(A)(6) for the definition entity s within Ohio and without Ohio includable business income entity where such transactions either result in or would result equity investments in (i) S corporations (including limited Estates and Trusts; AND Estimated Withholding Tax Payments for the Taxable Year even if the related receipts are excluded from the sales factor Example: A pass through entity whose equity investors are composed except as discussed below the qualifying pass through entity Exception: The paid preparer should print (rather than write) his/her exchange disposition or other grant of the right to use trademarks excluded from the factor These amounts are situsable to Ohio as excludes receipts attributable to nonbusiness income allocable exempt from federal income tax pursuant to I R C 501(a) or expense directly or indirectly claimed by the taxpayer under I R C EXT for taxable year beginning in 2013 to remit any withholding Extension of Time to File Ohio Form IT 1140 extension of time to file the federal tax return (IRS form 1065 1120S falls on a weekend or holiday then the due date is the fi rst business Feb 1 2014 and ending Jan 31 2015 the entity elects to fi le the federal at risk limitation rules this investor pass through entity federal law is not subject to a tax on or measured by net income Federal Privacy Act Notice field number 3 (see Tax Credits Available to Certain Investors file an annual report with the Ohio superintendent of insurance File below Note: Ohio will follow the lead of the IRS by extending file Ohio form IT 4708 final determination of the adjustment for federal income tax purposes financial holding companies bank holding companies or Financing fees Fiscal filers: Please use the rate in effect on the last day of the taxable year If Schedule B line 10 column (B) refl ects both following the end of the qualifying pass through entity s or following: for all qualifying investors who are nonresident individuals for any for any portion of the qualifying trust s taxable year (see for any portion of the trust s taxable year For detailed information and examples regarding these adjustments For detailed information see R C 5733 40 5733 41 and 5747 40 For example if (i) the IRS form 1065 is due April 15 2014 and for IRS income tax paper returns that paid practitioners prepare For purposes of this provision the determination of whether or For taxable year beginning in For taxable years ending on or after June 26 2003 compensation for taxable years ending on or after June 26 2003 Ohio law For the calculation of the adjusted qualifying amount see line 9 For the deaf hearing impaired or for the Elderly (TCE): These programs for the liability may be collected by assessment in the manner for the taxable year during or for which the trust distributes for the transmission of information by magnetic media (for more forbearance of the use of money; Format the fields must appear in the following order: forms IT 1140 and IT 4708 the pass through entity should include forth in field number 3 forth in items #1 through #9 above (or any combination thereof) franchise tax but only if all the other equity investors in the franchise tax if they were not exempt from the Ohio corporation franchise tax in accordance with R C 5733 06(D) on the first franchise tax See R C 5703 262(B) and 5747 08(F) franchise tax under R C 5733 09 See the second sentence of franchise tax; OR Frequently Asked Questions Refund Status from filing with the Ohio Department of Taxation the appropriate from qualifying pass through entities and distributions from qualifying from the IRS an extension of time to file use Ohio form IT 1140 from the qualifying pass through entity or qualifying trust from which the service is directed or controlled is not in any state FT REF) or with the Ohio income tax return (Ohio forms IT 1040 IT General Instructions Guaranteed payments made to partners has a beneficial interest in the entity s profits surpluses losses has the same extension of time to file the Ohio form IT 1140 have nexus with Ohio and (iii) limited liability companies that have nexus with Ohio and for federal income tax purposes are have reported all periods of income having for its taxable year at least 90% of its assets represented having nexus with Ohio under the Constitution of the United help older disabled low income and hiotax hio gov holding companies bank holding companies savings and loan holding companies insurance companies or persons directly or Holding Company Act However the pass through entity or trust can pass through (via However there is no extension of time for payment of the withholding I R C 168(k) bonus depreciation claimed for the taxable year under the I R C and must also add back 2/3 5/6 or 6/6 of the qualifying I R C 179 If a taxpayer submits the information in ASCII Comma Delimited if any of the following apply: If as a result of a taxpayer s amendment to or the IRS adjustment to If the entity fails to file the Ohio pass through entity and trust withholding If the entity fails to pay the full amount of tax by the 15th day of If the investment pass through entity does not provide on a if the owner is filing or is exempt from filing with the Ohio if the parent S corporation has qualifying investors the parent If the pass through entity or trust has used Ohio form IT 4708ES to If the pass through entity or trust made the 2/3 5/6 or 6/6 addback If the qualifying pass through entity or qualifying trust has nexus If the qualifying pass through entity or qualifying trust has secured If the qualifying pass through entity or the qualifying trust has an If the taxable year of the investment pass through entity ends on If there is more than one qualifying investor or if there is more than If this pass through entity or trust has invested in a partnership Important note: There is no need to file if any of the following is Important: S corporation shareholders cannot claim this deduction in a Pass through Entity and/or (iv) nonresident estates on in a Pass through Entity for the taxable year in a reduction or deferral of the Ohio corporation franchise tax In addition each qualifying trust (defined on page 3) is subject to a In addition the pass through entity can defer making all or some of In all cases interest is due on the late payments from the unextended in an investment pass through entity shall be deemed to be In determining average value do not include in either Within Ohio in field number 3 in its apportionment factors (see Schedule C) its proportionate In order for qualifying investors and qualifying beneficiaries to claim in qualifi ed research In such circumstances to the extent that this investor pass through in the investment pass through entity in this state during the taxable year and the denominator of which in which some part of the service is performed but the recipient s in which the taxpayer directly or indirectly owns at least 5% (see R C in your area call the IRS at 1 800 8291040 Incentive Qualifi cation Certificate issued by the Ohio Development included in this report if the shareholder directly or indirectly income and gain pass through from that entity to another passthrough income or franchise tax returns income tax adjustments (discussed below) (iii) amounts not income tax purposes the taxpayer must file an amended Ohio form IT income tax returns To avoid penalties be sure the pass through income that is exempt) You can obtain a copy of the release indicate on Ohio form IT 1140 Schedule A line 3b the amount to be indirectly owned by such businesses individual qualifying benefi ciary individuals if the qualifying Industrial Water Pollution Control Certificate See R C 5733 05(B) Information Releases Tax Forms information see IRS publications 1525 and 3416) The magnetic information which is any of the following: insurance premiums tax Interest and Penalty Due on Late Paid Tax and/or Interest income Interest Income which lists most types of federal interest Interest or similar amounts received for the use of or for the Interest Penalty on Underpayment of Tax Schedule A Line 2 investee entity s taxable year are limited to those investors set investment pass through entity on the last day of the investee investment pass through entity s taxable year See R C 5747 401 investor is not subject to the investor or qualifying beneficiary the following information: investor or qualifying beneficiary) investor pass through entity makes the 2/3 5/6 or 6/6 add back investor s proportionate share of the withholding tax or the entity Investor? below); Investors in a Pass through Entity for the taxable year investors other than investors subject to the Investors that are themselves pass through entities but Investors that satisfy all the following: is considered as the place at which such property is received by is due) complete Ohio form IT/SD 2210 (available on our Web site is not presumed to be nonbusiness income All income gain loss is the average value of all the pass through entity s includable real is timely and fully paid is ultimately received after all transportation has been completed is unable to deduct fully a loss passing through from the other IT 1140 IT 1140 IT 1140 IT 1140 IT 1140 IT 1140 the K 1s of participating investors IT 1140ES payments (ii) the amount of each payment transferred IT 1140P and place your FEIN on the check IT 4708 ( Composite Income Tax Return for Certain Investors in a IT 4708 Composite Income Tax Return for Certain Investors its apportionment ratio its proportionate share of each lower tiered Jan 9 1992 information release entitled Exempt Federal last day of the financial institution s calendar or fiscal year in Late Filed Return Schedule A Line 9 law the taxpayer could not claim any section 179 expense if the leases or subleases to others if the income or loss from such rentals liability companies treated as S corporations for federal income liability for failure of the qualifying entity to file any report or limited to (i) individuals who are full year residents of Ohio limited to full year Ohio resident taxpayers (individuals estates limited to the following during the taxable year of the qualifying Line 1(a) Property Owned Total Everywhere Line 1(a) Property Owned Within Ohio Line 1(b) Property Rented Within Ohio Line 1(c) Property Ratio Line 1(c) Property Total Within Ohio and Total Everywhere Line 1(c) Weighted Property Ratio Line 10 Tax Rate Line 10 Total Amount Owed Line 2 Payroll Ratio Line 2 Payroll Total Everywhere Line 2 Payroll Within Ohio Line 2 Weighted Payroll Ratio Line 2(a) and Schedule D Line 2(a) Depreciation Add Back Line 2(b) and Schedule D Line 2(b) Other Adjustments Line 3 Sales Ratio Line 3 Sales Total Everywhere Line 3 Sales Within Ohio Line 3 Weighted Sales Ratio Line 4 Total Weighted Apportionment Ratio Line 6 Compensation Add Back Loan fees located in Ohio or to tangible personal property located in Ohio magnetic media please affix to the outside of the magnetic media maintenance organizations or any other corporation required to make all other required adjustments for this line Make check payable to Ohio Treasurer of State include Ohio form make estimated payments in connection with the pass through entity maximum amount that could be expensed was $25 000 and means any form of remuneration paid to an employee for personal media must set forth the name address and FEIN or Social member s manager s employee s investor s or benefi ciary s members of the investor or with any related member of the Miscellaneous Federal Income Tax Adjustments Monday through Friday more assets to one or more persons and then issuing securities motor carrier corporation who performs his regularly assigned Multiply the property ratio on line 1(c) by the property factor weighting Multiply the property ratio on line 2 by the payroll factor weighting Multiply the sales ratio on line 3 by the sales factor weighting of 60% must follow those same procedures with respect to the following must include with the corporation franchise tax report (Ohio form FT must indicate the amount of tax credits that will pass through must pay the withholding tax and entity tax as if the investors in name and FEIN of the qualifying pass through entity or qualifying name on the form if the taxpayer checks Yes to the question Do names patents copyrights and similar intellectual property; Neither the investor nor the qualifying pass through entity carries Net capital gains from the sale or exchange of intangible Net management fees (management fees that the passthrough no miscellaneous federal tax adjustments on this return See Am non English speaking people fill in their nonresident individuals nonresident estates and nonresident trusts not an asset is a capital asset or a 1231 asset is made without not constitute delivery to the purchaser in Ohio regardless of Note: Income and gain from receipts excluded from the sales factor Note: Please put tax return in proper numerical order and place Note: The tax is due only if the adjusted qualifying amount exceeds Note: When calculating the withholding tax and the entity tax each number (FEIN) of each person who has an equity investment number 1 through number 9 You must repeat all nine fi elds for each number that you wish to contact number the Federal Privacy Act of 1974 requires us to inform numerator and the denominator of the sales factor to the extent obligations and gains from the sale or other disposition of Ohio obtained a federal extension of time to file and if the entity s total of $50 per month up to a maximum of $500 or 5% per month up of 20% of delivery of tangible personal property by common carrier or by of delivery trucks may not situs driver payroll based upon the ratio of either the federal passive activity loss limitation rules or the of income attributable to the pass through entity; of income relating to real property in Ohio and to tangible personal of its gross income from one or more of the following sources: of miles traveled in Ohio to miles traveled everywhere See Cooper of nonbusiness income See R C 5733 05(B)(2) as amended of payments from a trust or fund that is a nuclear decommissioning of related member ) of such tax that the investee partnership or investee limited liability of tangible personal property (2) receipts from the sale of real of taxation That is the character of all income and deductions (and of the amounts previously added back of the entity tax and/or withholding tax with respect to which the of the tax are due on the 15th day of the fourth month of the United States for any portion of the qualifying pass through of the withholding tax and/or entity tax that the qualifying passthrough of transportation to a person or firm designated by a purchaser Office hours: 8 a m 5 p m Ohio and Total Everywhere during the taxable year Property rented Ohio Department of Taxation Ohio Department of Taxation Ohio form IT 1140 is based upon the first day of the pass through Ohio form IT 1140ES must accompany each estimated payment Ohio form IT 4708 a schedule setting forth (i) the dates of Ohio form Ohio form IT 4708 Composite Income Tax Return for Certain Ohio form IT 4708 If the pass through entity will be filing both Ohio Ohio form IT 4708EXT payments (ii) the amount of each payment Ohio If the receipts are not based on the amount of use of that Ohio IT 1140 Ohio paper returns: individual income tax school district income tax Ohio pass through entity return but the pass through entity will Ohio resident individual nor an Ohio resident estate; AND Ohio resident taxpayers: individuals estates and trusts (R C Ohio Revised Code sections 5703 05 5703 057 and 5747 08 on behalf of their clients Except as set forth below paid preparers on July 31 2002 and Nov 7 2002 on line 2(a) shareholders should also include the respective on Ohio form IT 1140ES Worksheet #1 and line 3 on Ohio form IT on page 10) on page 3) But see the table on page 9 for information relating on the Information Releases link on whose behalf the qualifying pass through entity files one qualifying beneficiary repeat the sequence set forth in fields only if the owners of those other pass through entities are operations the place from which the recipient s service is directed or (c) an at least 25% owned fi nancial institution or (ii) corporations that would be paying the Ohio corporation or 1041) then the qualifying pass through entity or qualifying trust or a partnership or a limited liability company (treated as a partnership or as an S corporation for federal income tax purposes) in which the or business (see R C 5733 05(B)(2)(c)): or controlled is within Ohio or the base of operations or the place or distributions (partnerships trusts or other business interests) or in Total Everywhere the following: or indirect investment in the qualifying pass through entity R C or indirectly owning at least 20% of the stock or other equity of or limited liability company that also filed Ohio form IT 1140 this or limited liability company treated as either a partnership or an or similar transactions for fi nancial institutions financial original cost of qualifying improvements to land or tangible personal other means of transportation the place at which such property other pass through entities See R C 5733 402 other sales not excluded from the sales factor and not otherwise other similar trust or fund established to resolve and satisfy other than an electric company combined electric company or other than individuals are shown in the table on page 9 others eight times its net annual rental rate) within Ohio that is out at any time any transactions either with any related outside Ohio to a person or firm designated by a purchaser does owned at least 20% of the S corporation at any time during the ownership or disposition of intangible property owns at least 50% of the entity s memberhip interests (LLCs) OR P O Box 182382 page 4 paid both within and without this state during the taxable year paid everywhere during the taxable year paid in Ohio during the taxable year Compensation is paid in Ohio paid to employees to the extent that the compensation relates paramount in determining the proportion of the benefit in Ohio to partnership or S corporation and such entity s equity investors are partnership or S corporation and the entity is filing the Ohio form pass through entities may file Ohio form IT 1140 or may choose to pass through entity Pass Through Entity Pass through Entity ) on behalf of all of its equity investors who pass through entity does not include the following: pass through entity intangible assets include investments in pass through entity investor other than those qualifying passthrough pass through entity must pay the 8 5% entity tax with respect to pass through entity or qualifying trust will issue to the qualifying pass through entity or trust cannot claim the credit as an estimated pass through entity or trust is not entitled to any credit for this passthrough pass through entity provides on a timely basis to the pass through entity s items of income listed below in the pass through entity s property payroll and sales See R C 5733 057 Pass through entity s taxable year pass through entity s taxable year then this deemed investor pass through entity stating that the investor irrevocably pass through entity that changes forms from year to year must make pass through entity that has generated I R C 168(k) bonus pass through entity to this investor pass through entity pass through entity; Pass Through Entity? on page 3) doing business in Ohio or otherwise passing through to qualifying pay any tax due as required by those sections The sum due pay the Ohio gross receipts excise tax paying requirements set forth in R C chapter 5733; AND payment for this pass through entity s or trust s taxable year Payment Transfers Schedule A Lines 3(a) and 3(b) payments made by the due date without extension equal or exceed Payroll Factor pays to any person) but only if such net management fees Penalties and Interest Pension plans and charities (an entity exempt from federal income period beginning 12 months before the first day of the personal property owned or rented and used in the trade or business personal property rented and used in the trade or business Within personal property that the pass through entity rents subrents Persons that are or may be beneficiaries of a pension plan Persons that are or may be beneficiaries of or the recipients Persons who are or may be the beneficiaries of a complex phase out (see Schedule B column B) phase out for certain corporate investors Phase Out of Pass Through Entity Tax for Certain Corporate Investors Please provide investor information for all qualifying pass through please use the year 2013 Ohio form IT 1140EXT which is on our portion of the qualifying pass through entity s taxable year (see Preparer s Name Program (VITA) and Tax Counseling property property but rather on the right to use the property and the payor property during the year exceeded $200 000 So under the prior Property Factor property in an enterprise zone for which the taxpayer holds a Tax property in Ohio property inventory (such as lots developed and sold by a real estate property is a capital asset or an asset described in I R C 1231 property is sitused to the destination state as a sale of Property owned by the pass through entity is valued at its original Property relating to or used in connection with the production provided in section 5747 13 of the Revised Code provides for a failure to pay penalty which is up to a maximum of Public Law 86 272 and if the qualifying pass through entity has no public obligations See R C 5709 76 Publicly traded partnerships (a partnership with equity securities Purpose: Use this form to report withholding tax due on (i) passthrough purposes (see the Check the Box U S Treasury regulations) AND purposes of determining if a pass through entity is an investment Qualified subchapter S subsidiary (QSSS) corporations (however qualifying amount each taxpayer must add back 2/3 5/6 or 6/6 of the qualifying amount that would otherwise pass through from the qualifying beneficiaries with respect to the withholding tax that a qualifying beneficiary set forth in field number 3 qualifying entity s fiscal responsibilities is personally liable for qualifying entity who is responsible for the execution of the qualifying investor and for each qualifying benefi ciary The K 1 qualifying investor or qualfying beneficiary seeks to claim a credit qualifying investor or qualifying beneficiary set forth in qualifying investor or to each qualifying beneficiary (see Tax qualifying investors Qualifying pass through entities whose equity investors are limited to qualifying pass through entity (hence deemed investors ) qualifying pass through entity and each qualifying trust investing in qualifying pass through entity are limited to (i) other corporations qualifying pass through entity claims an exemption under U S qualifying pass through entity or qualifying trust has invested retains qualifying pass through entity or qualifying trust to the qualifying pass through entity or qualifying trust will issue to each qualifying pass through entity s taxable year ending within the qualifying pass through entity the name address and Social qualifying pass through entity to the investment pass through qualifying trust has withheld in connection with that nonresident qualifying trust s taxable year Also see Extension of Time To R C 5701 11 and 5733 40(A)(5) state that in determining the adjusted R C 5733 06 with respect to the investor s distributive share R C 5733 0611 and 5747 059 provide that qualifying investors (see R C 5733 40(A)(2) provides that distributive shares of income R C 5747 453 imposes personal liability for failure to pay the withholding rate (annual rental expense less subrental receipts) reason for the overpayment See Abitibi Price Corporation and Receipts and any related gains and losses from the sale or other Receipts and any related gains or losses from the sale or other receipts during the taxable year The sales factor specifically Receipts from sales of real property inventory in Ohio Receipts from sales of tangible personal property less returns Receipts from sales to: (a) an at least 80% owned public utility Receipts from the performance of services and receipts from any Receipts from the sale exchange disposition or other grant of receive a federal tax benefit from the bonus depreciation amount Reciprocity agreements do not apply to those nonresidents directly reciprocity agreements in order to avoid adding back compensation recomputation or redetermination a change occurs in any item affecting refund is received after the end of the taxable year refund(s) previously claimed for this taxable year regard to the holding period specified in the Internal Revenue regarding Ohio bonus depreciation adjustments available on our registered with the U S Securities Exchange Commission under related members having nexus with Ohio under the Constitution Rents and royalties from real property located in Ohio Rents and royalties from tangible personal property to the extent Reporting IRS Changes require the use of monthly values during the taxable year if Required Documents for Ohio Form IT 1140 required under R C 5747 41 through 5747 453 requirements during the trust s taxable year: reserve fund a designated settlement fund or any residence is in Ohio residing outside Ohio the trust will be withholding tax as respect to the sale in Ohio to the purchaser s benefit with respect responsibility for filing returns and making payments or any Responsible Party Liability retirement trust; OR return box on the front of the return Return for Certain Investors in a Pass through Entity ) To the extent Return Ohio form IT 1041 which is on the Department of Taxation s return reflects an underpayment the amended return must be return would be due May 15 2014 For the fiscal year beginning returns; Rev 10/13 Rev 10/13 Rev 10/13 Rev 10/13 Rev 10/13 Rev 10/13 Revenue from servicing processing or modifying tangible personal ries on page 10) You need not include any attachments or rule applies to those persons who are the direct investors in the S corporation for federal income tax purposes However a qualifying S corporation is a pass through entity that must compute the S subsidiary and the entity s owner is filing with or is exempt sales are situsable to the final destination after all transportation Sales Factor sales ratio savings and loan holding companies but only if those persons are Schedule B column A); AND Schedule B line 8 (both columns) Schedule B Qualifying Pass Through Entities Tax Due Schedule C Qualifying Pass Through Entities Schedule D); AND Schedule E Investor Information Schedule E Investor Information and include with Ohio form schedules relating to the K 1 section 12 of the Securities Exchange Act of 1934); Securities Exchange Act of 1934) Securities Exchange Commission under section 12 of the Security number for each qualifying investor and indicate Security number in order to administer this tax Security number or FEIN for each investor in the investment See Am Sub House Bill 472 129th General Assembly see R C 5747 01(A)(20) as amended by the 129th General Service 1 800 750 0750) for additional assistance Service at 1 800 750 0750 or 7 1 1 service within Ohio; OR Services Agency services Do not include in Within Ohio or in Total Everywhere the set forth in field number 3 set out below share of each lower tiered pass through entity s property payroll similar injury claims; OR similar intellectual property are sitused to Ohio to the extent that sitused within or without Ohio under the above situsing provisions Situsing Revisions ) so elects please indicate on Ohio form IT 1140 Schedule A line 3a so transferred solely of nonresident individuals has a Jan 31 fi scal year Some of the recipient s service is performed within Ohio and Special Notes specifically excludes from the factor property relating to or used in speech impaired who use TTY or state and federal returns For locations state of Ohio has issued an Air Pollution Noise Pollution or an State of the qualifying investor or qualifying beneficiary set forth state tax measured on or by net income (see the department s States is subject to a withholding tax and to an entity tax based Street address of the qualifying investor or qualifying beneficiary Sub House Bill 472 129th General Assembly However you must subject to a tax on or measured by net income (discussed below) subrentals leases or subleases is business income Furthermore subsequent taxable years the taxpayer can deduct 1/2 1/5 or 1/6 Subsidiaries v Tracy BTA No 98 N 401 (3 12 01) Such items of income include the following: such property are sitused to Ohio to the extent the receipts are such values more reasonably reflect the average value of the sure that (i) all periods of income are reported and (ii) all related tax tangible personal property including leasehold improvements owned tangible personal property located in Ohio and no direct or indirect tangible personal property See Custom Deco Inc v Limbach tax and/or entity tax due but not yet paid as of the unextended Tax Apportionment Ratio Tax Credits Available to Certain Investors and Beneficiaries tax due is not paid by the extended due date tax is paid by the unextended due date and (ii) the balance of the tax on a consolidated basis with all of the S corporation s QSSS tax or the entity tax Late payments are subject to interest tax purposes) that have nexus with Ohio (ii) partnerships that tax pursuant to Internal Revenue Code (I R C ) 501(a) or Tax rate on Ohio income tax return by the due date (or extended federal due date) Tax Return Instructions tax Set forth below is that section of the law: tax that was paid on or with respect to the qualified investor s direct taxable year taxable year immediately following the taxable year for which this taxable year The statutorily required mileage ratio applies only to Taxation Taxpayer Assistance taxpayer s purchases during the year of section 179 property as Taxpayer Service Center Taxpayer Service Center Hours Taxpayer Services Division Taxpayer Services Mailing Address TDD only: Please contact the Ohio Relay telephone company (b) an at least 80% owned insurance company than nonresident individuals and corporate investors subject to that are paying the Ohio corporation franchise tax and/ that character for purposes of the withholding tax and the entity tax that the pass through entities pay to such nonresidents See R C that the pass through entity elects to make such transfers please The 5% withholding tax also applies to adjusted qualifying The 5% withholding tax applies to the adjusted qualifying amounts The 8 5% entity tax (see page 7 Line 10 Tax Rate) applies to the 8 5% rate and the phase out rate please attach a schedule reflecting the computation of tax for each investor the add back under the following circumstances: the adjusted qualifying amounts for all qualifying investors other the adjusted qualifying amounts for the taxable year beginning in the amount to be transferred from the Ohio forms IT 4708ES and IT the benefit everywhere For taxable years ending on or after Dec the case of property that the pass through entity is renting from the computation of the taxpayer s income as reported for federal the cost values at the beginning and at the end of the taxable The credit is based upon the amount of tax (net of refunds if the denominator of the sales factor even if the receipts arise from the distribution directly or indirectly relates either to real estate the distributive share of income and gain passing through from The entity is a trust that has no real estate located in Ohio no The entity is a trust whose beneficiaries are limited to full year The entity is an S corporation a partnership or a limited liability The entity is an S corporation partnership or limited liability The entity is either a disregarded entity or a qualifying subchapter the entity tax law and the withholding tax law and (iv) includes the extent that the pass through entity s distributive shares of the failure to file any report or to pay any tax due as required the filing deadline for taxable year 2013 to April 15 2014 The following receipts are not includable in either the numerator or the fourth month following the last day of the taxable year the law the includable gross receipts reflect business done in Ohio Sales the investee qualifying pass through entity to the investment the investing entity (i) is not an investment pass through entity the investment pass through entity and if the investment passthrough the investment pass through entity is a direct equity investor the investment pass through entity were actual investors in the The investor makes a good faith and reasonable effort to fully The investor submits a written statement to the qualifying the K 1s it will issue) to its qualifying investors or to its qualifying the last day of each quarter of the taxable year If the 15th day the last day of the pass through entity s calendar or fi scal year A the law provides for a failure to fi le penalty which is the greater The law specifically includes in the sales factor the following the management fees that the pass through entity incurs or the net amount of tax credits that will pass through from The Ohio Department of Taxation follows IRS Service Notice 200454 the Ohio Department of Taxation phone The original cost of property within Ohio with respect to which the The original cost of real property and tangible property (or in The pass through entity can also elect to transfer Ohio form IT the pass through entity or trust made the Ohio form IT 4708ES and the pass through entity So pass through entities cannot use the The payroll factor is a fraction the numerator of which is the total the payroll ratio The percentages are based upon quarterly averages calculated the phase out began once the cost of purchases of section 179 The property factor is a fraction the numerator of which is the average The property factor specifically includes real property and tangible the property was used in Ohio the purchaser Direct delivery in Ohio other than for purposes The qualifying investor s or beneficiary s proportionate share The qualifying investor s or beneficiary s proportionate share of the qualifying pass through entities investors during the threeyear the qualifying pass through entity and qualifying trust must include in the qualifying pass through entity or qualifying trust must make estimated the qualifying pass through entity or qualifying trust to each the receipts are based on the amount of use of that property in The recipient s service is performed both within and outside Ohio The recipient s service is performed entirely within Ohio; OR the regular course of a trade or business: (1) receipts from sales the right to use trademarks trade names patents copyrights and the sale exchange disposition or other grant of the right to use The sales factor is a fraction whose numerator is the pass through the tax due on Ohio form IT 1140 If the pass through entity or trust The tax is due only if the adjusted qualifying amount exceeds the taxpayer s federal income tax return or if as a result of any other the third paragraph of R C 5733 41 the total mileage traveled by such employee everywhere during the The trust has at least one beneficiary who is neither a full year The trust makes a distribution to a nonresident benefi ciary and The trust will file the IRS form 1041 U S Income Tax Return for the withholding tax and/or entity tax that passes through from these credits the qualifying investor or the qualifying beneficiary These estimated payments are due on the 15th day of the month following These instructions provide a general overview of the annual filing This add back and subsequent deduction law also covers (i) This deemed investor rule applies only to the extent the investment This provision applies even if the statute of limitations has passed this return and net of amounts shown on Schedule A line 3b This yearly withholding tax return Ohio form IT 1140 and payment through 5747 453 You can also call 1 614 387 0234 (Ohio Relay timely basis to the qualifying pass through entity the name address timely paying or are exempt from paying the Ohio corporation Tire and Rubber Co v Limbach (1994) 70 Ohio St 3d 347 to a maximum of 50% of the tax to Amended Substitute House Bill 66 126th General Assembly to and liable for the corporation franchise tax calculated under To compute an interest penalty (or to show that no interest penalty to distributive shares of income passing through to investors to each qualifying investor or qualifying benefi ciary (See to interest penalties (see Ohio form IT/SD 2210) The year 2013 to Ohio form IT 4708 and (iii) if an amended return the amount of to the production of nonbusiness income allocable under R C to the qualifying pass through entity the name address to the sale everywhere The physical location where the purchaser Toll Free 24 Hour Refund Hotline 1 800 282 1784 Toll Free Form Requests 1 800 282 1782 Toll Free Tax Questions 1 800 282 1780 Toll Free Telephone Numbers trade names patents copyrights and similar intellectual property trade or business everywhere during such year Transaction fees earned in connection with the acquisition transactions activities and sources in the regular course of a trade transferred from Ohio forms IT 1140ES or IT 1140EXT payments to transferred to Ohio form IT 1140 and (iii) if an amended return the treated as either partnerships or S corporations; OR trust (ii) the phrase IT 1140 K 1 Information and (iii) the phrase trust but only if the trust irrevocably agrees in writing that trust must separately state on the form K 1 which the qualifying trust profit sharing trust a stock bonus plan trust or similar trustee or other fi duciary officer member or manager of the Trusts may also be required to file the Ohio Fiduciary Income Tax trusts shall be reduced by any amount that pursuant to the trusts) [R C 5747 01(I) and (N)]; OR ultimately uses or receives the benefit of what was purchased is under 12 U S C 1843(k) under 12 United States Code (U S C ) 1843(k) Under I R C 179 as that section existed on Dec 31 2002 the under R C 5733 051 under R C 5733 051 (see R C 5733 05(B)(2) and the tax commissioner s until the taxable year or years for which this investor pass through Upon completing an amended return please check the amended upon each qualifying investor s share of the qualifying pass through used exclusively during the taxable year for qualifi ed research value of the pass through entity s includable real and tangible Volunteer Income Tax Assistance Waiver fees Walk in Web site at tax ohio gov Web site at tax ohio gov These releases were originally posted Web Site tax ohio gov What Is a Qualifying Pass Through Entity? What Is a Qualifying Trust? when recognized by the qualifying pass through entity Furthermore where title passes or other conditions of sale Customer pick up Which Form Should I Use: Ohio IT 1140 or IT 4708? which have been transferred to Ohio form IT 4708); AND which or with which ends the qualifying pass through entity s which provides for alternative preparer signature procedures which the mileage traveled by such employee within Ohio bears to while the corporation was a C corporation See R C 5733 40(A)(5) Who Is a Qualifying Investor? whose behalf those other pass through entities file Ohio form will be filing both Ohio forms IT 1140 and IT 4708 please include with Ohio during any portion of its taxable year beginning in 2014 with Ohio form IT 1140 a schedule setting forth (i) the dates on which with respect to depreciable property for which the add back occurred With this fact pattern the pass through entity will not file any 2014 with this state under the U S Constitution during the taxable year withholding tax (employer and pass through entity) and corporation withholding tax based upon distributions of certain types of income withholding tax payments for the taxable year if (i) the sum of within Ohio include the following: Written year and dividing the total by two The tax commissioner may year and whose denominator is the sum of the pass through year R C 5733 40(A) (7) you authorize your preparer to contact us regarding this return? you that providing us your Social Security number is mandatory