CITY OF SHARONVILLE       
                      2022 BUSINESS INCOME TAX RETURN INSTRUCTIONS              
                      Phone: (513) 563-1169    Fax: (513) 588-3969    Website: www.sharonville.org 
                                                      Email:  taxoffice@cityofsharonville.com 
                                    Mail to: 11641 Chester Road, Sharonville, OH  45246-2803 
 
General Instructions: 
 
If you are filing for any year other than 01/01/2022 through 12/31/2022, indicate the year of the tax return with beginning 
and ending dates.  Fiscal year taxpayers should use the beginning year of the fiscal period as the year of the tax return.   
 
Any taxpayer who has received an extension for filing a federal income tax return will receive an extension for filing the 
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City’s tax return until the 15  day of the tenth month following the end of the calendar or fiscal year end.   Please attach a 
copy of the federal extension when filing to avoid a late filing penalty.  If a federal extension has not been requested, the 
taxpayer must request a city extension with the tax office by the original due date of the return. 
 
1.  Check the appropriate box that corresponds to the filing status of the business. 
2.  Complete  the  box  that  pertains  to  whether  or  not  the  account  should  be  inactivated.    If  your  account  should  be 
 inactivated, provide an explanation.   If this is a final return, give the reason why.  If the business was sold, provide the 
 name, address and phone number of the purchaser on a separate attachment. 
3.  Enter the taxpayer name, address, federal ID number and phone number in the space provided. 
4.  If the Sharonville business activity was for a portion of the year, please enter the start and end dates. 
5.  Attach a copy of the Federal Tax Return. 
 
Part A –TAX CALCULATION 
 
LINE 1:  Enter the Adjusted Federal Taxable Income (AFTI).  As defined by Ohio Revised Code (ORC) 718.01, AFTI 
means a C corporation’s federal taxable income before net operating losses and special deductions (Form 1120, line 28).  
Other  business  entities  must  compute  the  AFTI  as  if  they  were  a  C  corporation.    Generally  this  is  the  line  titled 
“Income/(Loss) Reconciliation” on the Schedule K of Form 1120S for subchapter S corporations or Page 5 Line 1 of Form 
1065 Analysis of Net Income (Loss) for partnerships and limited liability companies. 
 
LINE 2: Enter the total adjustments from Schedule X. 
 
LINE 3: Line 1 plus or minus Line 2. 
 
LINE 4: You may deduct up to the lesser of 50% of pre-apportioned losses carried forward from your 2017 through 2021 
tax returns, or 50% of your taxable income on Line 3.  
 
LINE 5: Line 3 minus Line 4.  Line 5 cannot be less than 50% of Line 3. 
 
LINE 6: Enter the apportionment percentage from Step 5 of Schedule Y. (See ORC 718.02) 
 
LINE 7a: Multiply Line 5 by Line 6 to calculate the taxable income for Sharonville. 
 
LINE 7b: Multiply Line 7a by 1.5% (.015) to calculate the Sharonville Tax amount. 
 
LINE 8a:  Enter the amount of estimated tax payments plus any amounts paid with an extension.   
 
LINE 8b:  Enter the amount of the overpayment from prior years credited to 2021. 
 
LINE 9:  Line 8a plus Line 8b. 
 
LINE 10:  If Line 7b is greater than Line 9 enter the tax due.   
 
LINE 11:  Enter the late filing penalty ($25 per month up to $150), if the return is being filed after the original or extended 
due date.  All taxes unpaid after the original due date of the return are subject to a 15% late payment penalty and shall 
bear interest at the rate of 5% during 2022. 
 
LINE 12:  Add Lines 10 and 11 for Total Balance Due. 
 
LINE 13:  If Line 9 is greater than Line 12, enter the overpayment. 
       
LINE 14:  Enter the amount to be refunded.  If this amount is less than $10, the amount will not be refunded. 
 
LINE 15:  Enter the amount to be credited to next year’s estimated tax liability.  If this amount is less than $10, the amount 
will not be credited. 
 
                      By law, all refunds and credits of $10.00 or more are reported to the I.R.S. 

Part B – DECLARATION OF ESTIMATED TAX  
Businesses  must  remit  quarterly  estimates  if  the  estimated  annual  tax  is  $200  or  more.    To  avoid  penalties  estimate 
payments must equal 100% of the prior year’s tax liability, or 90% of the current year’s tax liability and be made prior to 
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December 15  of the tax year (or by the 15  day of the twelfth month for fiscal year ends). Quarterly estimate payments 
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are due on the 15  day of the 4 , 6 , 9 , and 12  months following the beginning of the taxable year.  
 
LINE 16:       Enter the amount of estimated income for 2023 based on the prior year’s actual tax liability or 2023 expected 
income.  This estimate may be adjusted any time during the tax year if circumstances change. 
 
LINE 17:  Multiply Line 16 by 1.5% (.015).  Enter the total tax due for 2023.  If this amount is less than $200 you are not 
required to submit quarterly payments, however you may wish to do so to avoid any possible penalties or interest. 
 
LINE 18:       Multiply Line 17 by 22.5% to determine the minimum amount of estimated tax due for the first quarter.  We 
recommend  payments  of  25%  per  quarter  to  avoid  penalties.    As  a  courtesy,  statements  will  be  sent  in  August  & 
November each year; however it is the business’ responsibility to make sure payments are timely made. 
  
LINE 19:  Enter the credits from Line 15.                  
 
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LINE 20:  Subtract line 17 from Line 18 to calculate the amount of estimated taxes due for the 1  quarter.    
 
LINE 21 Add the:  amounts on Line 12 and Line 20 to determine the total amount due. 
                                                                         
Schedule X – RECONCILIATION WITH THE FEDERAL RETURN 
A.  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 includes the 1231 loss reported on 
     Form 4797, Part 1, Line 7. 
B.  Enter any taxes on or measured by net income included as a deduction in computing Line 1. 
C.  Enter any guaranteed payments or similar payments made to partners, members or other owners that were deducted 
     in arriving at the income amount on Line 1.   
D.   Enter 5% of the intangible income included in Line 1 of the Business Tax Return that is not directly related to the sale, 
     exchange or other disposition of property described in Section 1221 or 1231 of the Internal Revenue Code.  
E.   Add Real Estate Investment Trust distributions allowed as a deduction in the computation of Federal Taxable Income. 
F.   Enter amounts paid or accrued for qualified self-employed retirement plans, health or life insurance plans for partners, 
     shareholders or members of non-C Corporation entities. 
G.   Enter the amount of depreciation recovery (non-C corporations are subject to IRC Section 291 depreciation recovery on 
     section 1250 property). 
H.   Additional lines are for other adjustments (ie. losses from flow-thru entities, 10% charitable contribution limitation).  
I.   TOTAL ADDITIONS - Add Lines A through H. 
J.  Enter the amount of the income that is included on Line 1 of the Business Tax Return that is directly related to the 
     sale, exchange, or other disposition of an asset described in Section 1221 or 1231 of the Internal Revenue Code less 
     the income and gain included in this amount that is described in Section 1245 or 1250 of the Internal Revenue Code.  
K.  Enter the total amount of intangible income included in Line 1 of the Business Tax Return that is not directly related to 
     the sale, exchange or other disposition of property described in Section 1221 or 1231 of the Internal Revenue Code. 
     Intangible income generally includes but is not limited to interest, dividends, copyrights and patents.   
L.  If Line 1 of the return includes other income exempt from municipal tax, enter on this line and provide an explanation.   
M.  TOTAL DEDUCTIONS - Add Lines J through L. 
N.  Combine Lines I and M and enter on Page 1, Part A, Line 2. 
 
Schedule Y – APPORTIONMENT TO SHARONVILLE 
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 Sharonville 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 sitused. 
Real property shall include property rented or leased by the taxpayer.  The value of such property shall be determined by 
multiplying the annual rental thereon by eight.    
Step 2. Compute the percentage of total personal compensation paid during the period for services performed in the City 
of  Sharonville  to  total  personal  compensation  paid  during  the  same  period  for  all  business  locations.    Do  not  include 
amounts paid to contractors. 
Step  3.  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 Sharonville to gross receipts of the business or profession during the 
same period from sales and services, wherever made or performed. 
Step 4. Calculate the total of the 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 Part A, Line 6 of 
the return.