The Ohio Business Income Deduction is not offset by the SEP-IRA adjustment on the federal return. The amount to use, according to the Ohio Schedule IT-BUS instructions is as follows:
Line 2 – Schedule C, Profit or Loss from Business
Enter on this line the amount on your federal 1040, line 12. If the
amount entered is negative, place a “-“ in the box provided.
Example: Sam has a sole proprietorship that reports a net loss of
-$15,000 on federal Schedule C. Sam’s wife Suzy has a sole proprietorship
that reports a net profit of $10,000 on federal Schedule
C. The net Schedule C income reported on Sam and Suzy’s federal
1040, line 12 is -$5,000. Sam and Suzy must report -$5,000
on the Ohio IT BUS, line 2. 2017
Ohio Schedule IT BUS
