Is the gain on the sale of a rental house and discontinuing rental business considered business income on the Ohio tax return
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New Member

Is the gain on the sale of a rental house and discontinuing rental business considered business income on the Ohio tax return

 
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Level 2

Is the gain on the sale of a rental house and discontinuing rental business considered business income on the Ohio tax return

The answer depends on your particular circumstances.  Residential rental activities are not considered business income for the Ohio Business Income Deduction unless they meet the required criteria.  

The gain on the sale of the rental house would qualify if you determine the rental activity qualifies.

  • For more information about this deduction you can click the link here.  Ohio Business Income Deduction
  • Click the screenshot(s) attached for review and you can find this link on the same page.

As indicated below, they have more detail to review and determine based on your situation.

(Edited: 01.09.2018 | 8:59 AM)

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Level 15

Is the gain on the sale of a rental house and discontinuing rental business considered business income on the Ohio tax return

Yet, you find this at the same link:

How do I know if my rental income qualifies as business income?

If you own one or more rental property and received rent from your tenants on a regular, consistent basis, your rental income qualifies as business income.

Example: You own a house in Cleveland and rented it out to a family all year. The family paid rent on a monthly basis throughout 2016. This qualifies as business income because you received consistent monthly payments.

If you own a house and rented it out temporarily for a short period of time, your rental income doesn't qualify as business income.

Example: You live at Muirfield Village in Dublin, Ohio and rent out your house for two weeks during the Memorial Golf Tournament. Your rental income doesn't qualify as business income because it you didn't receive regular, consistent payments throughout the year.
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Level 2

Is the gain on the sale of a rental house and discontinuing rental business considered business income on the Ohio tax return

@Hal_Al Thank you for the assistance.  The answer has been updated.
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