INSTRUCTIONS FOR CITY OF MIDDLETOWN – BUSINESS RETURN (Form BR)
                                           You must attach complete copies of federal forms, schedules, and 
                                                                      supporting statements as filed with the IRS.

General Instructions
Who files this form?
Corporations, partnerships, and S-Corps file a Business Return                                                  limited liability companies provide a list of corporate officers 
as  an  entity  doing  business  or  located  in  Middletown.                                                   and owners, including the ownership percentage.
Individuals, such as sole proprietors, rental property owners, 
and  resident  partners  report  their  income  on  Form  IR  –                                                 Extensions
Individual Return.                                                                                              If you need an extension to file, you must request it directly If you filed an extension with the IRS, please attach a copy to 
                                                                                                                your city return. with  the  City  of  Middletown.    Extension  requests  must  be An extension to file is not an extension to 
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employee or subcontractor.whether an individual is an employee or subcontractor.                                Forms.income tax, then download forms.

Provide  ownership  information:  S-Corps  and  partnerships                                                    Questions?
please provide K-1s.  For all closely held corporations, or                                                     Please feel free to call us at (513) 425-7862 between the hours 
                                                                                                                of 8:00AM to 5:00PM, Monday through Friday.

Special Instructions
Line 1 – Enter the Adjusted Federal Taxable Income (AFTI) as defined by the Ohio Revised Code(ORC) 718.01.  All business entities 
compute AFTI as if they were C corporations.
       •       For corporations use 1120, line 28, Taxable income before net operating loss deduction and special deductions.
       •       S-Corps usually use 1120S, Schedule K, line 18, Income/Loss Reconciliation.
       •       Partnerships and limited liability companies use 1065, page 5, line 1, Net Income.
       •       Nonresident sole proprietors filing on a business return will disregard these instructions and use 1040, Schedule C, line 31,
               Net Profit or Loss
       •       Nonresident landlords filing on a business return will disregard these instructions and use 1040, Schedule E, line 26, Total21,
               rental real estate and royalty income or (loss.)

Line 2 – Refer to Schedule X instructions on the reverse side.
Line 5Line 4 – Refer to Schedule Y instructions on the reverse side.
If you are a resident entity, all of your income is subject to Middletown tax, with credit given for taxes paid to other municipalities.  If 
you are claiming payments to other municipalities, you must provide copies of returns filed in those cities.  If you are a non-resident 
entity doing business both within and without Middletown, use Schedule Y to determine the percentage of your income subject to 
Middletown tax.

Declaration of Estimated Tax
Any entity anticipating that their tax liability at the end of 2023 will be more than $200 must make estimated tax payments. Taxpayers 
must have 90% of their current  year tax liability or 100% of their previous year’s tax liability paid through quarterly estimated tax 
payments to avoid penalty and interest.  Estimated taxes must be paid in full by                                           DecemberDecember 15.15. If you wait until you file your return, you 
will be subject to penalty and interest.   

DECLARATION AND RETURN PAYMENT CALENDAR
               APRIL 15TH*APRIL 15TH*                          JUNE 15TH                                    SEPT 15            DEC 15DEC 15                                APRIL 15*APRIL 15*
   File Declaration                              2nd quarter payment    3rd quarter payment   4th quarter payment                                                           File return
1st quarter payment 
*The filing deadline for your return is April18th15th
Did you remember to include:Did you remember to include:
       •       •  complete copies of federal forms, schedules, and supporting statements as filed with the IRS?complete copies of federal forms, schedules, and supporting statements as filed with the IRS?
       •       •  copies of all 1099-misc forms issued to Ohio residentscopies of all 1099-misc forms issued for persons/businesses working in Middletown
       •       •  list of corporate officers and owners/partners including name, social security number and ownership percentage (if list of corporate officers and owners/partners including name, social security number and ownership percentage
               not included with federal forms)  (if not included with federal forms)

                                                                Schedule X – Reconciliation with Return

A.  Enter the amount included in Line 1 of the Business Tax Return related to the sale, exchange, or otherA. Enter the amount included in Line 1 of the Business Tax Return related to the sale, exchange, or other 
     disposition of an asset described in section 1221 or 1231 of the Internal Revenue Code. This woulddisposition of an asset described in section 1221 or 1231 of the Internal Revenue Code.  This would 
     include the 1231 loss reported on Form 4797.include the 1231 loss reported on Form 4797.
B.   Enter any taxes on or measured by net income included as a deduction in computer Line 1.B. Enter any taxes on or measured by net income included as a deduction in computer Line 1.
 C. Enter any guaranteed payments, or similar payments made to partners, members or other owners that 
C.   Enter 5% of the intangible income included in Line 1 of the Business Tax Return that is not directly
      were deducted in arriving at the income amount on Line 1.
     related to the sale, exchange or other disposition of property described in Section 1221 of the Internal
 D. Enter 5% of the intangible income included in Line 1 of the Business Tax Return that is not directly 
     Revenue Code (usually 5% of Line J).
     related to the sale, exchange or other disposition of property described in Section 1221 of the Internal 
D.  AddRevenueReal EstateCodeInvestment(usually 5%Trustof LinedistributionsK).                       allowed as a deduction in the computation of Federal
 E.TaxableAdd RealIncome.Estate Investment Trust distributions allowed as a deduction in the computation of Federal 
E.   EnterTaxableamountsIncome.related to self-employed retirement plans , pension plan and health or life insurance 
 F.plansEnterforamountsan ownerrelatedor owner-employeeto self-employedofretirementa non C corporation.plans and health or life insurance plans for an owner 
F.   Enteror owner-employeecharitable contributionof a noninC corporation.excess of the 10% federal limit
G.  Other (explain).G. Enter charitable contribution in excess of the 10% federal limit
 H. Other (explain).
H.  Total items not deductible (A – G).
 I. Total items not deductible (A – H).
I.   Enter the amount of the capital gain income that is included on Line 1 of the Business Tax Return. DoJ. Enter the amount of the capital gain income that is included on Line 1 of the Business Tax Return.  Do 
     not include capital gains relating to 1245 or 1250 property – these gains are taxable.not include capital gains relating to 1245 or 1250 property – these gains are taxable.
J.   Enter the total amount of intangible income included in Line 1 of the Business Tax Return. IntangibleK. Enter the total amount of intangible income included in Line 1 of the Business Tax Return.  Intangible 
     income generally includes, but is not limited to interest, dividends, copyrights and patents.income generally includes, but is not limited to interest, dividends, copyrights and patents.
K.  If Line 1 of the return includes other income except from municipal tax, enter on this line and provide anL. If Line 1 of the return includes other income except from municipal tax, enter on this line and provide an 
     explanation.explanation.
L.   Total items not taxable (I - K).M. Total items not taxable (J – L).
M. N.DeductCombine DeductLineLineLineLMfromIfromandLineMLineandHI.andenterEnterenteronthePagenetnetamount1,amountline 2.asasananadditionaddition(or(ordeduction)deduction)ononLineLine22.of page 1.

                                                                  Schedule Y – Apportionment Formula
Step 1.  Compute the percentage of the original average cost of the real and tangible personal property owned 
or used by the taxpayer in the City of Middletown during the taxable period to the original average cost of all 
of the real and tangible personal property owned or used by the taxpayer during the same period, wherever 
situated.  Rental expense for real or personal property must be multiplied by 8.
Step 2.  Compute the percentage of the gross receipts of the business or profession from sales made and 
services performed during the taxable period in the City of Middletown to gross receipts of the business or 
profession during the same period from sales and services, wherever made or performed.
Step  3.    Compute  the  percentage  of  total  personal  compensation  paid  during  the  period  for  services 
performed in the  City of Middletown to total personal compensation paid during the same  period for all 
business locations.  Do not include amounts paid to contractors.
Step 4.  Calculate the total of percentages derived in Steps 1 through 3.
Step 5.  Divide the total derived in Step 4 by the number of percentages used.  Insert this percentage on Page 
1, Line 4 of the return.

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