Ohio Business Income Deduction

[dasherson]

The capital gains on the sale of my rental apartment in March 2019 was $300,000. Can I list this $300,000 as Other Business Income on my Ohio taxes?

[AlanT222]

Unfortunately you cannot list it as other business income on your Ohio taxes.  If it is a capital gain on your federal then it is a capital gain on your Ohio.  

[Hal_Al]

Yes, you can. That qualifies, since it was a gain on the sale of business property (rentals count)  In the interview, federal schedule D will be a choice.  If you show a loss on Federal Schedule E, you must show that as business income (loss) too, effectively reducing the BID.

See line 3 on the form

 https://www.tax.ohio.gov/portals/0/forms/ohio_individual/individual/2019/Schedule_ITBUS_FI.pdf

From the Ohio instructions:

Line 3 - Schedule D, Capital Gains and
Losses
Enter capital gains or losses reported
on federal Schedule D that qualify as
business income. Do not include gains or
losses from the sale of property that was
not used in a trade or business, as well
as gains or losses from the sale of the
ownership interest in a business itself.

There is a $250,000 maximum BID limit

[dasherson]

Thanks for your reply. Are you sure about your answer?. The sale of my rental apartment is listed on Form 4797 Sales of Business Property on my Federal taxes, and the capital gain is reflected online 11 on my Schedule D. From the answer below it seems I can take the $300,000 as a Ohio Business income Deduction. Thoughts?

Hal_Al
Level 15
Friday
Ohio Business Income Deduction
Yes, you can. That qualifies, since it was a gain on the sale of business property (rentals count) In the interview, federal schedule D will be a choice. If you show a loss on Federal Schedule E, you must show that as business income (loss) too, effectively reducing the BID.
See line 3 on the form
https://www.tax.ohio.gov/portals/0/forms/ohio_individual/individual/2019/Schedule_ITBUS_FI.pdf
From the Ohio instructions:
Line 3 - Schedule D, Capital Gains and
Losses
Enter capital gains or losses reported
on federal Schedule D that qualify as
business income. Do not include gains or
losses from the sale of property that was
not used in a trade or business, as well
as gains or losses from the sale of the
ownership interest in a business itself.

There is a $250,000 maximum BID limit

[dasherson]

My reply above was directed to the response from 
AlanT222
Employee Tax Expert
Thursday

[Hal_Al]

I'm never *sure* of anything when it comes to taxes.  But I claimed this same deduction last year. 

Are you asking if I'm sure of the $250,000 limit? You seem to think you can deduct the full $300,000??

The statement "Enter capital gains or losses reported on federal Schedule D" infers that you enter no more than $250,000.  See https://www.tax.ohio.gov/Individual/BusinessIncomeDeduction.aspx

[dasherson]

Thank you.