Ohio Tax, business income and capital gains

[tmyers001]

A lot going on this year, I retired 9/31/21, set up a small business entity to continue doing contract labor with my previous employer and had significant capital gains to report.

In order to account for the contract labor income TT had me set up a small business. During the year my broker sold off some high risk stock and we had capital gains of about $52000. When working on my Ohio Return, TT put the $52,000 in capital gains in the Ohio Schedule IT Bus, line 3. Since OH doesn't tax anything less than $250,000 in Business income I am paying no Ohio tax on the capital gains. In truth the capital gains have nothing to do with my business entity.

Is this correct or should the capital gains be removed from the Ohio Schedule IT as a business income? Same situation with Line 1, Interest and Ordinary Dividends?

[Hal_Al]

Q. Is this correct or should the capital gains be removed from the Ohio Schedule IT as a business income?

A. No.

Q.  Same situation with Line 1, Interest and Ordinary Dividends?

A. No.

TurboTax (TT) asks you to tell it whether those items are business income.   You need to go back to that screen and change your answer to 0, in each category.  

Your schedule C income is business income for the Ohio Schedule IT Bus.  But your schedule C income (most likely) does not qualify for the Federal QBI deduction.  This is because of rules about doing business with your former employer.  

[tmyers001]

Thank you, that is what I thought and I found where the IT Bus blocks were populated with the numbers.