- 3 -
|
Line 6 - If you have other income that is taxable to the I – Enter other non-deductible expenses and attach
JEDD, enter it here. documentation and/or explanation for this entry.
Line 7 - Add Line 1 or 2 to Lines 5 & 6 to find your
taxable JEDD Net Profit or Loss. J – Total entries 8A thru 8I and enter this figure
on Line 3 of Worksheet X.
If you have income that must be allocated
between multiple taxing jurisdictions,
N
complete WORKSHEET Y. If your income is Line 9 - ITEMS NOT TAXABLE - amounts that will
O allocated 100% to the JEDD and Line 7 is be deducted from the BASE INCOME.
greater than zero, enter this figure on Page
T 1, Line 1 of the return. If Line 7 is a negative
A – Enter the capital gains that directly relate to the
E number, enter it in the “TAX YR OF FILING”
sale, exchange or other disposition of Section 1221
column of WORKSHEET F on Page 1. If and 1231 assets. [ORC 718.01(E)(4 a)( )]
allocation is required, complete Worksheet
Y.
Line 8 - ITEMS NOT DEDUCTIBLE - these are B – Include intangible income such as
amounts that must be added to the BASE INCOME. interest, dividends, patents, etc. [ORC 718.01( )(1)] E
A – Enter your capital losses, including losses C – Enter other exempt income and attach
directly related to the sale, exchange or other documentation and/or explanation for this entry.
disposition of an asset described in Section 1221 or
1231 of the IRC. [ORC 718.01( )(E)]3
D – Total entries 9A thru 9C and enter this figure on
B – Add 5% of the amount deducted as intangible Line 4 of Worksheet X.
income (9B), but not the portion related to the sale,
exchange or disposition of property described in IRC
Section 1221. [ORC 718.01(E)(2)]
WORKSHEET Y: Business Allocation
C – Enter Guaranteed payments to partners, retired or
former partners, members or other owners, if not All businesses that derive income from locations both
included in “net profits.”[ORC 718.01(E)(1 )]0 inside and outside the JEDD, must allocate their total
net income (or loss) as to the portion attributable to the
D – Add back all taxes that are based on income, JEDD and to the portion attributable elsewhere. [ORC
such as state and local income taxes.[ORC 718.01( )E 718.02(A)] WORKSHEET Y must be used to arrive at
(5)] these figures.
E – Except for a C Corporation, with respect to a partner, Line 1 – Under column A, enter the figure that
former partner, shareholder, former shareholder, member, represents the total original cost of the real and
or former member of the taxpayer: amounts paid or tangible property that your company held during the
accrued to a qualified self-employed retirement plan, paid current taxable year at all locations. Under column B,
to or accrued to or for health insurance, and paid to or enter a similar figure representing only the original cost
accrued to or for life insurance, shall not be allowed as a of properties located in the JEDD. On the second part
deduction. [ORC 718.01(E)(10)] of Line 1, multiply the gross annual rents paid by your
company by 8 and enter the results under the
F – As with C corporations, the deduction for appropriate columns. Finally, total Line 1, columns A
charitable contributions is limited to 10%. Enter any and B.
amount claimed that exceeds this limit.
Line 2 – Under column A, enter the company’s total
G – If business or rental property is sold, exchanged wages, commissions and other compensation paid to
or otherwise disposed, you must calculate the JEDD’s all employees located everywhere. Under column B,
“Recovery of Depreciation” as if the business were a C enter only those wages, commissions and other
corporation. [ORC 718.01(E)(4)(b)] compensation paid to employees working in the JEDD.
Line 3 – Under column A, enter the company’s gross
H - For real estate investment trusts and regulated receipts received from all sales and services
investment companies, all dividends, distributions or
performed everywhere. Under column B, enter the
amonts set aside or credited to the benefit of investors amount as identified under “Sales” on Page 4 of the
must be entered on this line. [ORC 718.01 (E)(6)] instructions.
- 3 - Rev /1 2021
|