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CITY OF BLUE ASH INCOME TAX RETURN INSTRUCTIONS – BUSINESS FORM
GENERAL INFORMATION
This form is to be used by all entities, even if no tax is due, other than sole proprietorships and single member limited liability
corporations. Sole proprietors and single member limited liability companies should file on the Individual Income Tax Return.
Extension Requests: Federal extensions will extend to the Blue Ash return. If no federal extension is granted, a taxpayer
may request a Blue Ash extension by the filing due date. The extension will extend the due date to the 15th day of the
eleventh month after the last day of the taxable year in which the return relates. An extension to file is not an extension to pay.
Penalty and interest will apply to all payments received after the return due date.
Estimated Payments: First quarter due with return, quarters 2, 3, and 4 due by the 15 thof the sixth month, by the 15 ofth the
ninth month, and by the 15 thof the twelfth month.
Required Information and Documents:
1. Filing Period: Indicate the year of the tax return with beginning and ending dates. Fiscal year taxpayers should use the
beginning year of the fiscal year period as the year of the tax return. Indicate if this is an original return or amended return.
2. Complete all check boxes and answer all questions. Did you file a Blue Ash return in the previous year? Is this a combined
corporate return? Should the account be inactivated? If so, provide an explanation. If you sold the business, provide the
name, address, and phone number of the purchaser on a separate attachment.
3. Provide the business name, address, and EIN/FID number (or make corrections if using a pre-printed form). Also include the
Blue Ash account number.
4. Identify the filing status of the business. (C-Corp, S-Corp, LLC, Partnership/Association)
5. Provide copies of all federal forms and schedules. If amending, provide the amended federal return and/or Internal Revenue
Service audit documentation.
Part A – Tax Calculation
LINE 1: Enter the Adjusted Federal Taxable Income (AFTI) from the appropriate federal form as follows:
Form 1120, Line 28
Form 1120S, Schedule K, Line 18
Form 1065, Analysis of Net Income (Loss), Line 1
LINE 2: Enter the total adjustments from Schedule X, Line M on page 2 of the return.
Schedule X – Reconciliation with the Federal Return
ADD – Items not Deductible and Included in Line 1
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 would include the 1231 loss reported
on Form 4797.
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. This includes amounts related to self-employed retirement plans and
health or life insurance for an owner or owner-employee.
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 any amounts deducted on the Federal return for owners’ benefits, such as qualified self-employment retirement
plans, health insurance plans, or life insurance for owners or owner-employees.
G. Other. Please provide a complete explanation. Examples: Losses from flow-through entities, charitable contribution
deducted above the 10% corporation limitation.
H. Add Lines A through G.
DEDUCT – Items not Taxable and Included in Line 1
I. 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 or 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.
J. 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.
K. If Line 1 of the return includes other income exempt from municipal tax, enter on this line and provide an explanation.
L. Add Lines I through K.
M. Deduct Line L from Line H. Insert the net amount as an addition (or deduction) on Page 1, LINE 2.
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