Ohio Dept. of Taxation Issues Favorable Guidance for 20% or More Owners of Pass-Through Entities
Under the most recently enacted Ohio budget bill, signed by Governor John Kasich on June 30, 2013, owners of pass-through entities and sole proprietorships were granted a deduction equal to one-half of the Ohio business income generated by these businesses for taxable years 2013 and following. Pursuant to a recent interpretation by the Ohio Department of Taxation ("ODT"), this deduction could also be computed by including compensation paid to 20% or more owners of these Ohio businesses.
