A question on my Ohio return is asking about pass-through entity addbacks. They do not explain what they're asking for in this question. Can anyone clarify?

[ColeenD3]

Please see this LINK for more information.

[aduncans]

I'm also struggling with this—just *what* number TurboTax wants me to put on this line. It asks for the "2019 amount." Is this my ordinary business income (loss) on my K-1?

[ReginaM]

Yes, the information is cominng from your K-1, the amount subject to the addback is the taxpayer's total §179 expense less $25,000 plus all of the taxpayer's §168(k) depreciation expense. This includes depreciation from their own business, as well as their proportionate share of depreciation from any pass-through entity in which the taxpayer is an investor.

State of Ohio Pass Through Entities

[maryk2]

If K1 has a loss, do you enter zero?

[DaveF1006]

 if you are filing your personal return and if you receive K1's, there may be pass-through entity addbacks reported on the k1. if you don't have a K1, disregard this and answer no.  If you do have K1's, you may check some of the supplementary statements that came with your K1 to see if there is any reference to a pass-through entity addbacks. 

[47acre94]

Hello ColeenD3,

I have used the link provided, which takes me to the Ohio dept of taxation. From there I tried typing in pass through entity addbacks and didn't find anything specific on this subject. Is there a particular Ohio publication reference that you can provide that would help clarify this? I couldn't find whatever it was you were trying to reference. 

Thanks,

47acre94

[47acre94]

Hello ReginaM,

Several have posted links to Ohio's department of taxation but the links I think get disconnected at that site. I end up landing on the main page, not specific to this question. Is there a specific Ohio document that talks about pass through entity addbacks and how to enter them into TurboTax? In your response, when you start talking about the total "179" expenses and the "168(k)" depreciation expenses, you lose me...  I believe box 12 is the "179 deduction" box. Are you saying that if I had a negative amount in box 12, I would include that as a positive number in the Turbotax entry screen to "add it back"? 

Thanks,

Sometimes things need to be dumbed down a little for me! 

47acre94 

[calbert2004]

There is nothing on my K-1 concerning pass-through entity addbacks.  The question on turbotax premier regarding any pass-through entity addbacks is not a yes or no question.  It asks for an amount.  So, if there is no category on my K-1, do I enter 0 or do I have to figure it out myself?

[ReneeM7122]

Without seeing your return, it's hard to know exactly what the software is calculating.  It sounds like it has to do with a recapture amount.  The instructions do mention addbacks for Line 1a:  

Line 1a - Current year 168(k) and 179 depreciation expense Ohio add-back Enter the add-back fraction that was checked on the Ohio return. Total Column: Enter the investor’s/beneficiary’s proportionate or distributive share of the current year 168(k) and 179 depreciation expense add-back reported on:  IT 1140 - Schedule II, (A) or (B);  IT 4708 - Schedule II; OR IT 1041 - Schedule II.

Here is a link to the instructions for the Ohio IT K-1.

@calbert2004