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IT NRC
Rev. 10/16
10211411
erty inventory (such as lots developed and sold by a real estate provisionsaresitusabletoOhioinproportiontothepurchaser’s
developer); (iii) rents and royalties from tangible personal prop- benefit, with respect to the sale, in Ohio to the purchaser’s
erty; (iv) rents and royalties from real property; (v) receipts from benefit,withrespecttothesale,everywhere.Thephysicalloca-
the sale, exchange, disposition or other grant of the right to use tionwherethepurchaserultimatelyusesorreceivesthebenefit
trademarks, trade names, patents, copyrights and similar intel- of what was purchased is paramount in determining the propor-
lectual property; (vi) receipt from the sale of services and other tionofthebenefitinOhiotothebenefiteverywhere. Note: For
receipts not expressly excluded from the factor. These amounts taxable years ending on or after Dec. 11, 2003, the “cost of
are situsable to Ohio as set forth below. performance” provision is no longer the law.
Line 3, Column 1 – Sales Within Ohio Line 3, Column 2 – Sales Everywhere
Enter the total of gross receipts from sales not excludable from the Enter the total of such includable gross receipts, less returns and
numerator and the denominator of the sales factor, to the extent allowances, from sales everywhere.
theincludablegrossreceiptsreflectbusinessdoneinOhio.Sales
within Ohio include the following: Line 3, Column 3 – Sales Ratio
Enter the ratio of sales within Ohio to total everywhere by dividing
Receipts from sales of tangible personal property, less returns column 1 by column 2.
and allowances, received by the purchaser in Ohio. In the case
of delivery of tangible personal property by common carrier or by Line 3, Column 5 – Weighted Sales Ratio
other means of transportation, the place at which such property Multiply the sales ratio on line 3, column 3 by the sales factor
is ultimately received after all transportation has been completed weighting of 60%.
is considered as the place at which such property is received by
Line 4, Column 5 – Total Weighted Apportionment Ratio
the purchaser. Direct delivery in Ohio, other than for purposes
Add column (5), lines 1(c), 2 and 3.
of transportation, toa person orfirm designated by a purchaser
constitutes delivery to the purchaser in Ohio, and direct delivery Summary of Business Income From All Entities (Part IV)
outsideOhiotoapersonorfirm designatedbyapurchaserdoes
not constitute delivery to the purchaser in Ohio, regardless of Separately list the business income from each entity for which you
where title passes or other conditions of sale. completed a page 2 of the Ohio IT NRC. Space for up to 16 entities
is provided. List the entities in the same order that you assigned
Customer pick-up sales are situsable to thefinal destination af- them in the header of Part II. If you have more than 16 entities,
ter all transportation (including customer transportation) has been include additional Part IV(s) as needed. Total the amounts from
completed. See Dupps Co. v. Lindley (1980), 62 Ohio St. 2d 305. alladditionalentitiesonline17ofthefirstPartIVyoucomplete.
Revenue from servicing, processing or modifying tangible person- Summary of Business and Nonbusiness Income (Part V)
al property is sitused to the destination state as a sale of tangible
personal property. See Custom Deco, Inc. v. Limbach, BTA Case Line 4 and 5 – Ohio Schedule A Additions and Deductions
No. 86-C-1024, June 2, 1989. Exclude from these lines any Ohio Schedule A depreciation adjust-
ments or miscellaneous federal income tax adjustments that were
Receipts from sales of real property inventory in Ohio. reported in Part II, section B.
Rents and royalties from tangible personal property to the ex- Allocation of the Business Income Deduction
tent the property was used in Ohio. Taxpayers who have a business income deduction from Ohio
Schedule A included in the amount entered on line 5 should al-
Rents and royalties from real property located in Ohio.
locate that deduction first against the Ohio portion of business in-
Receipts from the sale, exchange, disposition or other grant of come on line 1, then any remaining portion of the deduction should
the right to use trademarks, trade names, patents, copyrights be allocated against the non-Ohio portion. The business income
and similar intellectual property are sitused to Ohio to the ex- deduction cannot be allocated against Ohio nonbusiness income.
tent that the receipts are based on the amount of use of that
Example: The taxpayer has $100,000 of total business income
property in Ohio. If the receipts are not based on the amount of
on Part V, line 1, column C that has been apportioned $50,000 to
use of that property, but rather on the right to use the property
Ohio(columnA)and$50,000tonon-Ohio(columnB).Thetaxpay-
and the payor has the right to use the property in Ohio, then the
erhasa$75,000businessincomedeductionfromOhioSchedule
receipts from the sale, exchange, disposition or other grant of
A that is reported on Part V, line 4, column C. The taxpayer should
the right to use such property are sitused to Ohio to the extent
allocate$50,000ofthedeductiontoOhio(columnA)andallocate
the receipts are based on the right to use the property in Ohio.
theremaining$25,000tonon-Ohio.ThisisregardlessofanyOhio
Receipts from the performance of services and receipts from nonbusiness income the taxpayer may have reported on line 2,
any other sales not excluded from the sales factor and not oth- column A.
erwise sitused within or without Ohio under the above situsing
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