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To amend sections 2101.16, 2107.76, 2111.05, 2111.18, | 1 |
2305.19, 5747.01, and 5815.31 of the Revised Code | 2 |
to exclude from the application of the savings | 3 |
statute certain estate and trust proceedings that | 4 |
have limitation periods, to raise the threshold | 5 |
amount for the termination or avoidance of | 6 |
guardianships of small estates of wards, to raise | 7 |
the threshold amount for the avoidance of | 8 |
guardianship upon the settlement of claims of | 9 |
minors or adult incompetents, and to clarify that | 10 |
termination of marriage revokes any trust | 11 |
provision conferring a beneficial interest on the | 12 |
former spouse. | 13 |
Section 1. That sections 2101.16, 2107.76, 2111.05, 2111.18, | 14 |
2305.19, 5747.01, and 5815.31 of the Revised Code be amended to | 15 |
read as follows: | 16 |
Sec. 2101.16. (A) Except as provided in section 2101.164 of | 17 |
the Revised Code, the fees enumerated in this division shall be | 18 |
charged and collected, if possible, by the probate judge and shall | 19 |
be in full for all services rendered in the respective | 20 |
proceedings: | 21 |
(1) | Account, in addition to advertising charges | 22 | |||||
$ | 12.00 | 23 | |||||
Waivers and proof of notice of hearing on account, per page, minimum one dollar | 24 | ||||||
$ | 1.00 | 25 | |||||
(2) | Account of distribution, in addition to advertising charges | 26 | |||||
$ | 7.00 | 27 | |||||
(3) | Adoption of child, petition for | 28 | |||||
$ | 50.00 | 29 | |||||
(4) | Alter or cancel contract for sale or purchase of real estate, petition to | 30 | |||||
$ | 20.00 | 31 | |||||
(5) | Application and order not otherwise provided for in this section or by rule adopted pursuant to division (E) of this section | 32 | |||||
$ | 5.00 | 33 | |||||
(6) | Appropriation suit, per day, hearing in | 34 | |||||
$ | 20.00 | 35 | |||||
(7) | Birth, application for registration of | 36 | |||||
$ | 7.00 | 37 | |||||
(8) | Birth record, application to correct | 38 | |||||
$ | 5.00 | 39 | |||||
(9) | Bond, application for new or additional | 40 | |||||
$ | 5.00 | 41 | |||||
(10) | Bond, application for release of surety or reduction of | 42 | |||||
$ | 5.00 | 43 | |||||
(11) | Bond, receipt for securities deposited in lieu of | 44 | |||||
$ | 5.00 | 45 | |||||
(12) | Certified copy of journal entry, record, or proceeding, per page, minimum fee one dollar | 46 | |||||
$ | 1.00 | 47 | |||||
(13) | Citation and issuing citation, application for | 48 | |||||
$ | 5.00 | 49 | |||||
(14) | Change of name, petition for | 50 | |||||
$ | 20.00 | 51 | |||||
(15) | Claim, application of administrator or executor for allowance of administrator's or executor's own | 52 | |||||
$ | 10.00 | 53 | |||||
(16) | Claim, application to compromise or settle | 54 | |||||
$ | 10.00 | 55 | |||||
(17) | Claim, authority to present | 56 | |||||
$ | 10.00 | 57 | |||||
(18) | Commissioner, appointment of | 58 | |||||
$ | 5.00 | 59 | |||||
(19) | Compensation for extraordinary services and attorney's fees for fiduciary, application for | 60 | |||||
$ | 5.00 | 61 | |||||
(20) | Competency, application to procure adjudication of | 62 | |||||
$ | 20.00 | 63 | |||||
(21) | Complete contract, application to | 64 | |||||
$ | 10.00 | 65 | |||||
(22) | Concealment of assets, citation for | 66 | |||||
$ | 10.00 | 67 | |||||
(23) | Construction of will, petition for | 68 | |||||
$ | 20.00 | 69 | |||||
(24) | Continue decedent's business, application to | 70 | |||||
$ | 10.00 | 71 | |||||
Monthly reports of operation | 72 | ||||||
$ | 5.00 | 73 | |||||
(25) | Declaratory judgment, petition for | 74 | |||||
$ | 20.00 | 75 | |||||
(26) | Deposit of will | 76 | |||||
$ | 5.00 | 77 | |||||
(27) | Designation of heir | 78 | |||||
$ | 20.00 | 79 | |||||
(28) | Distribution in kind, application, assent, and order for | 80 | |||||
$ | 5.00 | 81 | |||||
(29) | Distribution under section 2109.36 of the Revised Code, application for an order of | 82 | |||||
$ | 7.00 | 83 | |||||
(30) | Docketing and indexing proceedings, including the filing and noting of all necessary documents, maximum fee, fifteen dollars | 84 | |||||
$ | 15.00 | 85 | |||||
(31) | Exceptions to any proceeding named in this section, contest of appointment or | 86 | |||||
$ | 10.00 | 87 | |||||
(32) | Election of surviving partner to purchase assets of partnership, proceedings relating to | 88 | |||||
$ | 10.00 | 89 | |||||
(33) | Election of surviving spouse under will | 90 | |||||
$ | 5.00 | 91 | |||||
(34) | Fiduciary, including an assignee or trustee of an insolvent debtor or any guardian or conservator accountable to the probate court, appointment of | 92 | |||||
$ | 35.00 | 93 | |||||
(35) | Foreign will, application to record | 94 | |||||
$ | 10.00 | 95 | |||||
Record of foreign will, additional, per page | 96 | ||||||
$ | 1.00 | 97 | |||||
(36) | Forms when supplied by the probate court, not to exceed | 98 | |||||
$ | 10.00 | 99 | |||||
(37) | Heirship, petition to determine | 100 | |||||
$ | 20.00 | 101 | |||||
(38) | Injunction proceedings | 102 | |||||
$ | 20.00 | 103 | |||||
(39) | Improve real estate, petition to | 104 | |||||
$ | 20.00 | 105 | |||||
(40) | Inventory with appraisement | 106 | |||||
$ | 10.00 | 107 | |||||
(41) | Inventory without appraisement | 108 | |||||
$ | 7.00 | 109 | |||||
(42) | Investment or expenditure of funds, application for | 110 | |||||
$ | 10.00 | 111 | |||||
(43) | Invest in real estate, application to | 112 | |||||
$ | 10.00 | 113 | |||||
(44) | Lease for oil, gas, coal, or other mineral, petition to | 114 | |||||
$ | 20.00 | 115 | |||||
(45) | Lease or lease and improve real estate, petition to | 116 | |||||
$ | 20.00 | 117 | |||||
(46) | Marriage license | 118 | |||||
$ | 10.00 | 119 | |||||
Certified abstract of each marriage | 120 | ||||||
$ | 2.00 | 121 | |||||
(47) | Minor or |
122 | |||||
$ | 10.00 | 123 | |||||
(48) | Mortgage or mortgage and repair or improve real estate, petition to | 124 | |||||
$ | 20.00 | 125 | |||||
(49) | Newly discovered assets, report of | 126 | |||||
$ | 7.00 | 127 | |||||
(50) | Nonresident executor or administrator to bar creditors' claims, proceedings by | 128 | |||||
$ | 20.00 | 129 | |||||
(51) | Power of attorney or revocation of power, bonding company | 130 | |||||
$ | 10.00 | 131 | |||||
(52) | Presumption of death, petition to establish | 132 | |||||
$ | 20.00 | 133 | |||||
(53) | Probating will | 134 | |||||
$ | 15.00 | 135 | |||||
Proof of notice to beneficiaries | 136 | ||||||
$ | 5.00 | 137 | |||||
(54) | Purchase personal property, application of surviving spouse to | 138 | |||||
$ | 10.00 | 139 | |||||
(55) | Purchase real estate at appraised value, petition of surviving spouse to | 140 | |||||
$ | 20.00 | 141 | |||||
(56) | Receipts in addition to advertising charges, application and order to record | 142 | |||||
$ | 5.00 | 143 | |||||
Record of those receipts, additional, per page | 144 | ||||||
$ | 1.00 | 145 | |||||
(57) | Record in excess of fifteen hundred words in any proceeding in the probate court, per page | 146 | |||||
$ | 1.00 | 147 | |||||
(58) | Release of estate by mortgagee or other lienholder | 148 | |||||
$ | 5.00 | 149 | |||||
(59) | Relieving an estate from administration under section 2113.03 of the Revised Code or granting an order for a summary release from administration under section 2113.031 of the Revised Code | 150 | |||||
$ | 60.00 | 151 | |||||
(60) | Removal of fiduciary, application for | 152 | |||||
$ | 10.00 | 153 | |||||
(61) | Requalification of executor or administrator | 154 | |||||
$ | 10.00 | 155 | |||||
(62) | Resignation of fiduciary | 156 | |||||
$ | 5.00 | 157 | |||||
(63) | Sale bill, public sale of personal property | 158 | |||||
$ | 10.00 | 159 | |||||
(64) | Sale of personal property and report, application for | 160 | |||||
$ | 10.00 | 161 | |||||
(65) | Sale of real estate, petition for | 162 | |||||
$ | 25.00 | 163 | |||||
(66) | Terminate guardianship, petition to | 164 | |||||
$ | 10.00 | 165 | |||||
(67) | Transfer of real estate, application, entry, and certificate for | 166 | |||||
$ | 7.00 | 167 | |||||
(68) | Unclaimed money, application to invest | 168 | |||||
$ | 7.00 | 169 | |||||
(69) | Vacate approval of account or order of distribution, motion to | 170 | |||||
$ | 10.00 | 171 | |||||
(70) | Writ of execution | 172 | |||||
$ | 5.00 | 173 | |||||
(71) | Writ of possession | 174 | |||||
$ | 5.00 | 175 | |||||
(72) | Wrongful death, application and settlement of claim for | 176 | |||||
$ | 20.00 | 177 | |||||
(73) | Year's allowance, petition to review | 178 | |||||
$ | 7.00 | 179 | |||||
(74) | Guardian's report, filing and review of | 180 | |||||
$ | 5.00 | 181 |
(B)(1) In relation to an application for the appointment of a | 182 |
guardian or the review of a report of a guardian under section | 183 |
2111.49 of the Revised Code, the probate court, pursuant to court | 184 |
order or in accordance with a court rule, may direct that the | 185 |
applicant or the estate pay any or all of the expenses of an | 186 |
investigation conducted pursuant to section 2111.041 or division | 187 |
(A)(2) of section 2111.49 of the Revised Code. If the | 188 |
investigation is conducted by a public employee or investigator | 189 |
who is paid by the county, the fees for the investigation shall be | 190 |
paid into the county treasury. If the court finds that an alleged | 191 |
incompetent or a ward is indigent, the court may waive the costs, | 192 |
fees, and expenses of an investigation. | 193 |
(2) In relation to the appointment or functioning of a | 194 |
guardian for a minor or the guardianship of a minor, the probate | 195 |
court may direct that the applicant or the estate pay any or all | 196 |
of the expenses of an investigation conducted pursuant to section | 197 |
2111.042 of the Revised Code. If the investigation is conducted by | 198 |
a public employee or investigator who is paid by the county, the | 199 |
fees for the investigation shall be paid into the county treasury. | 200 |
If the court finds that the guardian or applicant is indigent, the | 201 |
court may waive the costs, fees, and expenses of an investigation. | 202 |
(C) Thirty dollars of the thirty-five-dollar fee collected | 203 |
pursuant to division (A)(34) of this section and twenty dollars of | 204 |
the sixty-dollar fee collected pursuant to division (A)(59) of | 205 |
this section shall be deposited by the county treasurer in the | 206 |
indigent guardianship fund created pursuant to section 2111.51 of | 207 |
the Revised Code. | 208 |
(D) The fees of witnesses, jurors, sheriffs, coroners, and | 209 |
constables for services rendered in the probate court or by order | 210 |
of the probate judge shall be the same as provided for like | 211 |
services in the court of common pleas. | 212 |
(E) The probate court, by rule, may require an advance | 213 |
deposit for costs, not to exceed one hundred twenty-five dollars, | 214 |
at the time application is made for an appointment as executor or | 215 |
administrator or at the time a will is presented for probate. | 216 |
(F) The probate court, by rule, shall establish a reasonable | 217 |
fee, not to exceed fifty dollars, for the filing of a petition for | 218 |
the release of information regarding an adopted person's name by | 219 |
birth and the identity of the adopted person's biological parents | 220 |
and biological siblings pursuant to section 3107.41 of the Revised | 221 |
Code, all proceedings relative to the petition, the entry of an | 222 |
order relative to the petition, and all services required to be | 223 |
performed in connection with the petition. The probate court may | 224 |
use a reasonable portion of a fee charged under authority of this | 225 |
division to reimburse any agency, as defined in section 3107.39 of | 226 |
the Revised Code, for any services it renders in performing a task | 227 |
described in section 3107.41 of the Revised Code relative to or in | 228 |
connection with the petition for which the fee was charged. | 229 |
(G)(1) Thirty dollars of the fifty-dollar fee collected | 230 |
pursuant to division (A)(3) of this section shall be deposited | 231 |
into the "putative father registry fund," which is hereby created | 232 |
in the state treasury. The department of job and family services | 233 |
shall use the money in the fund to fund the department's costs of | 234 |
performing its duties related to the putative father registry | 235 |
established under section 3107.062 of the Revised Code. | 236 |
(2) If the department determines that money in the putative | 237 |
father registry fund is more than is needed for its duties related | 238 |
to the putative father registry, the department may use the | 239 |
surplus moneys in the fund as permitted in division (C) of section | 240 |
2151.3529, division (B) of section 2151.3530, or section 5103.155 | 241 |
of the Revised Code. | 242 |
Sec. 2107.76. | 243 |
right to receive the notice of the admission of a will to probate | 244 |
required by section 2107.19 of the Revised Code may commence an | 245 |
action permitted by section 2107.71 of the Revised Code to contest | 246 |
the validity of the will more than three months after the filing | 247 |
of the certificate described in division (A)(3) of section 2107.19 | 248 |
of the Revised Code. No other person may commence an action | 249 |
permitted by section 2107.71 of the Revised Code to contest the | 250 |
validity of the will more than three months after the initial | 251 |
filing of a certificate described in division (A)(3) of section | 252 |
2107.19 of the Revised Code. A person under any legal disability | 253 |
nevertheless may commence an action permitted by section 2107.71 | 254 |
of the Revised Code to contest the validity of the will within | 255 |
three months after the disability is removed, but the rights saved | 256 |
shall not affect the rights of a purchaser, lessee, or | 257 |
encumbrancer for value in good faith and shall not impose any | 258 |
liability upon a fiduciary who has acted in good faith, or upon a | 259 |
person delivering or transferring property to any other person | 260 |
under authority of a will, whether or not the purchaser, lessee, | 261 |
encumbrancer, fiduciary, or other person had actual or | 262 |
constructive notice of the legal disability. | 263 |
| 264 |
265 | |
266 |
Sec. 2111.05. When the whole estate of a ward, or of several | 267 |
wards jointly, under the same guardianship, does not
exceed | 268 |
twenty-five thousand dollars in value, the guardian may apply to | 269 |
the probate court for an order to terminate the guardianship. Upon | 270 |
proof that it would be for the best interest of the ward to | 271 |
terminate the guardianship, the court may order the guardianship | 272 |
terminated, and direct the guardian, if the ward is a minor, to | 273 |
deposit the assets of the guardianship in a depository authorized | 274 |
to receive fiduciary funds, payable to the ward when | 275 |
attains majority, or the court may authorize the delivery of the | 276 |
assets to the natural guardian of the minor, to the person by whom | 277 |
the minor is maintained, to the executive director of children | 278 |
services in the county, or to the | 279 |
If the ward is an incompetent, and the court orders the | 280 |
guardianship terminated, the court may authorize the deposit of | 281 |
the assets of the guardianship in a depository authorized to | 282 |
receive fiduciary funds in the name of a suitable person to be | 283 |
designated by the court, or if the assets do not consist of money, | 284 |
the court may authorize delivery to a suitable person to be | 285 |
designated by the court. The person receiving the assets shall | 286 |
hold and dispose of them in the manner the court directs. | 287 |
If the court refuses to grant the application to terminate | 288 |
the guardianship, or if no such application is presented to the | 289 |
court, the guardian only shall be required to render account upon | 290 |
the termination of | 291 |
court made upon its own motion, or upon the order of the court | 292 |
made on the motion of a person interested in the wards or their | 293 |
property, for good cause shown, and set forth upon the journal of | 294 |
the court. | 295 |
If the estate is | 296 |
the ward is a minor, the court, without the appointment of a | 297 |
guardian by the court, or the giving of bond, may authorize the | 298 |
deposit in a depository authorized to receive fiduciary funds, | 299 |
payable to the
guardian when appointed, or to the ward when | 300 |
ward attains majority, or the court may authorize delivery to the | 301 |
natural guardian of the minor, to the person by whom the minor is | 302 |
maintained, to the executive director who is responsible for the | 303 |
administration of
children services in the county, or to the | 304 |
305 |
If the whole estate of a person over eighteen years of age, | 306 |
who has been adjudged | 307 |
incompetent, does not
exceed | 308 |
value, the court, without the appointment of a guardian by the | 309 |
court or the giving of bond, may authorize the deposit of the | 310 |
estate in a depository authorized to receive fiduciary funds in | 311 |
the name of a suitable person to be designated by the court, or if | 312 |
the assets do not consist of money, the court may authorize | 313 |
delivery to a suitable person to be designated by the court. The | 314 |
person receiving the assets shall hold and dispose of them in the | 315 |
manner the court directs. | 316 |
Sec. 2111.18. | 317 |
intangible property, or damage or loss on account of personal | 318 |
injury or damage to tangible or intangible property is caused to a | 319 |
ward by wrongful act, neglect, or default that would entitle the | 320 |
ward to maintain an action and recover damages for the injury, | 321 |
damage, or loss, and when any ward is entitled to maintain an | 322 |
action for damages or any other relief based on any claim or is | 323 |
subject to any claim to recover damages or any other relief based | 324 |
on any claim, the guardian of the estate of the ward may adjust | 325 |
and settle the claim with the advice, approval, and consent of the | 326 |
probate court. | 327 |
328 | |
329 | |
330 | |
331 | |
dollars or less after payment of fees and expenses as allowed by | 332 |
the court, the court, upon application by any suitable person whom | 333 |
the court may authorize to receive and receipt for the settlement, | 334 |
may authorize the settlement without the appointment of a guardian | 335 |
and authorize the delivery of the moneys | 336 |
337 | |
338 | |
Code. The court may authorize
the | 339 |
moneys to execute a complete release on account of the receipt. | 340 |
The payment shall be a complete and
final discharge of | 341 |
that claim. In the settlement, if the ward is a minor, the parent | 342 |
or parents of the minor may waive all claim for damages on account | 343 |
of loss of service of the minor, and that claim may be included in | 344 |
the settlement. | 345 |
Sec. 2305.19. (A) In any action that is commenced or | 346 |
attempted to be commenced, if in due time a judgment for the | 347 |
plaintiff is reversed or if the plaintiff fails otherwise than | 348 |
upon the merits, the plaintiff or, if the plaintiff dies and the | 349 |
cause of action survives, the plaintiff's representative may | 350 |
commence a new action within one year after the date of the | 351 |
reversal of the judgment or the plaintiff's failure otherwise than | 352 |
upon the merits or within the period of the original applicable | 353 |
statute of limitations, whichever occurs later. This division | 354 |
applies to any claim asserted in any pleading by a defendant. | 355 |
(B) If the defendant in an action described in division (A) | 356 |
of this section is a foreign or domestic corporation, and whether | 357 |
its charter prescribes the manner or place of service of process | 358 |
on the defendant, and if it passes into the hands of a receiver | 359 |
before the expiration of the one year period or the period of the | 360 |
original applicable statute of limitations, whichever is | 361 |
applicable, as described in that division, then service to be made | 362 |
within one year following the original service or attempt to begin | 363 |
the action may be made upon that receiver or the receiver's | 364 |
cashier, treasurer, secretary, clerk, or managing agent, or if | 365 |
none of these officers can be found, by a copy left at the office | 366 |
or the usual place of business of any of those agents or officers | 367 |
of the receiver with the person having charge of the office or | 368 |
place of business. If that corporation is a railroad company, | 369 |
summons may be served on any regular ticket or freight agent of | 370 |
the receiver, and if there is no regular ticket or freight agent | 371 |
of the receiver, then upon any conductor of the receiver, in any | 372 |
county in the state in which the railroad is located. The summons | 373 |
shall be returned as if served on that defendant corporation. | 374 |
(C) This section does not apply to an action or proceeding | 375 |
arising under section 2106.22, 2107.76, 2109.35, 2115.16, 5806.04, | 376 |
or 5810.05 of the Revised Code. | 377 |
Sec. 5747.01. Except as otherwise expressly provided or | 378 |
clearly appearing from the context, any term used in this chapter | 379 |
that is not otherwise defined in this section has the same meaning | 380 |
as when used in a comparable context in the laws of the United | 381 |
States relating to federal income taxes or if not used in a | 382 |
comparable context in those laws, has the same meaning as in | 383 |
section 5733.40 of the Revised Code. Any reference in this chapter | 384 |
to the Internal Revenue Code includes other laws of the United | 385 |
States relating to federal income taxes. | 386 |
As used in this chapter: | 387 |
(A) "Adjusted gross income" or "Ohio adjusted gross income" | 388 |
means federal adjusted gross income, as defined and used in the | 389 |
Internal Revenue Code, adjusted as provided in this section: | 390 |
(1) Add interest or dividends on obligations or securities of | 391 |
any state or of any political subdivision or authority of any | 392 |
state, other than this state and its subdivisions and authorities. | 393 |
(2) Add interest or dividends on obligations of any | 394 |
authority, commission, instrumentality, territory, or possession | 395 |
of the United States to the extent that the interest or dividends | 396 |
are exempt from federal income taxes but not from state income | 397 |
taxes. | 398 |
(3) Deduct interest or dividends on obligations of the United | 399 |
States and its territories and possessions or of any authority, | 400 |
commission, or instrumentality of the United States to the extent | 401 |
that the interest or dividends are included in federal adjusted | 402 |
gross income but exempt from state income taxes under the laws of | 403 |
the United States. | 404 |
(4) Deduct disability and survivor's benefits to the extent | 405 |
included in federal adjusted gross income. | 406 |
(5) Deduct benefits under Title II of the Social Security Act | 407 |
and tier 1 railroad retirement benefits to the extent included in | 408 |
federal adjusted gross income under section 86 of the Internal | 409 |
Revenue Code. | 410 |
(6) In the case of a taxpayer who is a beneficiary of a trust | 411 |
that makes an accumulation distribution as defined in section 665 | 412 |
of the Internal Revenue Code, add, for the beneficiary's taxable | 413 |
years beginning before 2002, the portion, if any, of such | 414 |
distribution that does not exceed the undistributed net income of | 415 |
the trust for the three taxable years preceding the taxable year | 416 |
in which the distribution is made to the extent that the portion | 417 |
was not included in the trust's taxable income for any of the | 418 |
trust's taxable years beginning in 2002 or thereafter. | 419 |
"Undistributed net income of a trust" means the taxable income of | 420 |
the trust increased by (a)(i) the additions to adjusted gross | 421 |
income required under division (A) of this section and (ii) the | 422 |
personal exemptions allowed to the trust pursuant to section | 423 |
642(b) of the Internal Revenue Code, and decreased by (b)(i) the | 424 |
deductions to adjusted gross income required under division (A) of | 425 |
this section, (ii) the amount of federal income taxes attributable | 426 |
to such income, and (iii) the amount of taxable income that has | 427 |
been included in the adjusted gross income of a beneficiary by | 428 |
reason of a prior accumulation distribution. Any undistributed net | 429 |
income included in the adjusted gross income of a beneficiary | 430 |
shall reduce the undistributed net income of the trust commencing | 431 |
with the earliest years of the accumulation period. | 432 |
(7) Deduct the amount of wages and salaries, if any, not | 433 |
otherwise allowable as a deduction but that would have been | 434 |
allowable as a deduction in computing federal adjusted gross | 435 |
income for the taxable year, had the targeted jobs credit allowed | 436 |
and determined under sections 38, 51, and 52 of the Internal | 437 |
Revenue Code not been in effect. | 438 |
(8) Deduct any interest or interest equivalent on public | 439 |
obligations and purchase obligations to the extent that the | 440 |
interest or interest equivalent is included in federal adjusted | 441 |
gross income. | 442 |
(9) Add any loss or deduct any gain resulting from the sale, | 443 |
exchange, or other disposition of public obligations to the extent | 444 |
that the loss has been deducted or the gain has been included in | 445 |
computing federal adjusted gross income. | 446 |
(10) Deduct or add amounts, as provided under section | 447 |
5747.70 of the Revised Code, related to contributions to variable | 448 |
college savings program accounts made or tuition units purchased | 449 |
pursuant to Chapter 3334. of the Revised Code. | 450 |
(11)(a) Deduct, to the extent not otherwise allowable as a | 451 |
deduction or exclusion in computing federal or Ohio adjusted gross | 452 |
income for the taxable year, the amount the taxpayer paid during | 453 |
the taxable year for medical care insurance and qualified | 454 |
long-term care insurance for the taxpayer, the taxpayer's spouse, | 455 |
and dependents. No deduction for medical care insurance under | 456 |
division (A)(11) of this section shall be allowed either to any | 457 |
taxpayer who is eligible to participate in any subsidized health | 458 |
plan maintained by any employer of the taxpayer or of the | 459 |
taxpayer's spouse, or to any taxpayer who is entitled to, or on | 460 |
application would be entitled to, benefits under part A of Title | 461 |
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. | 462 |
301, as amended. For the purposes of division (A)(11)(a) of this | 463 |
section, "subsidized health plan" means a health plan for which | 464 |
the employer pays any portion of the plan's cost. The deduction | 465 |
allowed under division (A)(11)(a) of this section shall be the net | 466 |
of any related premium refunds, related premium reimbursements, or | 467 |
related insurance premium dividends received during the taxable | 468 |
year. | 469 |
(b) Deduct, to the extent not otherwise deducted or excluded | 470 |
in computing federal or Ohio adjusted gross income during the | 471 |
taxable year, the amount the taxpayer paid during the taxable | 472 |
year, not compensated for by any insurance or otherwise, for | 473 |
medical care of the taxpayer, the taxpayer's spouse, and | 474 |
dependents, to the extent the expenses exceed seven and one-half | 475 |
per cent of the taxpayer's federal adjusted gross income. | 476 |
(c) For purposes of division (A)(11) of this section, | 477 |
"medical care" has the meaning given in section 213 of the | 478 |
Internal Revenue Code, subject to the special rules, limitations, | 479 |
and exclusions set forth therein, and "qualified long-term care" | 480 |
has the same meaning given in section 7702B(c) of the Internal | 481 |
Revenue Code. | 482 |
(12)(a) Deduct any amount included in federal adjusted gross | 483 |
income solely because the amount represents a reimbursement or | 484 |
refund of expenses that in any year the taxpayer had deducted as | 485 |
an itemized deduction pursuant to section 63 of the Internal | 486 |
Revenue Code and applicable United States department of the | 487 |
treasury regulations. The deduction otherwise allowed under | 488 |
division (A)(12)(a) of this section shall be reduced to the extent | 489 |
the reimbursement is attributable to an amount the taxpayer | 490 |
deducted under this section in any taxable year. | 491 |
(b) Add any amount not otherwise included in Ohio adjusted | 492 |
gross income for any taxable year to the extent that the amount is | 493 |
attributable to the recovery during the taxable year of any amount | 494 |
deducted or excluded in computing federal or Ohio adjusted gross | 495 |
income in any taxable year. | 496 |
(13) Deduct any portion of the deduction described in section | 497 |
1341(a)(2) of the Internal Revenue Code, for repaying previously | 498 |
reported income received under a claim of right, that meets both | 499 |
of the following requirements: | 500 |
(a) It is allowable for repayment of an item that was | 501 |
included in the taxpayer's adjusted gross income for a prior | 502 |
taxable year and did not qualify for a credit under division (A) | 503 |
or (B) of section 5747.05 of the Revised Code for that year; | 504 |
(b) It does not otherwise reduce the taxpayer's adjusted | 505 |
gross income for the current or any other taxable year. | 506 |
(14) Deduct an amount equal to the deposits made to, and net | 507 |
investment earnings of, a medical savings account during the | 508 |
taxable year, in accordance with section 3924.66 of the Revised | 509 |
Code. The deduction allowed by division (A)(14) of this section | 510 |
does not apply to medical savings account deposits and earnings | 511 |
otherwise deducted or excluded for the current or any other | 512 |
taxable year from the taxpayer's federal adjusted gross income. | 513 |
(15)(a) Add an amount equal to the funds withdrawn from a | 514 |
medical savings account during the taxable year, and the net | 515 |
investment earnings on those funds, when the funds withdrawn were | 516 |
used for any purpose other than to reimburse an account holder | 517 |
for, or to pay, eligible medical expenses, in accordance with | 518 |
section 3924.66 of the Revised Code; | 519 |
(b) Add the amounts distributed from a medical savings | 520 |
account under division (A)(2) of section 3924.68 of the Revised | 521 |
Code during the taxable year. | 522 |
(16) Add any amount claimed as a credit under section | 523 |
5747.059 of the Revised Code to the extent that such amount | 524 |
satisfies either of the following: | 525 |
(a) The amount was deducted or excluded from the computation | 526 |
of the taxpayer's federal adjusted gross income as required to be | 527 |
reported for the taxpayer's taxable year under the Internal | 528 |
Revenue Code; | 529 |
(b) The amount resulted in a reduction of the taxpayer's | 530 |
federal adjusted gross income as required to be reported for any | 531 |
of the taxpayer's taxable years under the Internal Revenue Code. | 532 |
(17) Deduct the amount contributed by the taxpayer to an | 533 |
individual development account program established by a county | 534 |
department of job and family services pursuant to sections 329.11 | 535 |
to 329.14 of the Revised Code for the purpose of matching funds | 536 |
deposited by program participants. On request of the tax | 537 |
commissioner, the taxpayer shall provide any information that, in | 538 |
the tax commissioner's opinion, is necessary to establish the | 539 |
amount deducted under division (A)(17) of this section. | 540 |
(18) Beginning in taxable year 2001 but not for any taxable | 541 |
year beginning after December 31, 2005, if the taxpayer is married | 542 |
and files a joint return and the combined federal adjusted gross | 543 |
income of the taxpayer and the taxpayer's spouse for the taxable | 544 |
year does not exceed one hundred thousand dollars, or if the | 545 |
taxpayer is single and has a federal adjusted gross income for the | 546 |
taxable year not exceeding fifty thousand dollars, deduct amounts | 547 |
paid during the taxable year for qualified tuition and fees paid | 548 |
to an eligible institution for the taxpayer, the taxpayer's | 549 |
spouse, or any dependent of the taxpayer, who is a resident of | 550 |
this state and is enrolled in or attending a program that | 551 |
culminates in a degree or diploma at an eligible institution. The | 552 |
deduction may be claimed only to the extent that qualified tuition | 553 |
and fees are not otherwise deducted or excluded for any taxable | 554 |
year from federal or Ohio adjusted gross income. The deduction may | 555 |
not be claimed for educational expenses for which the taxpayer | 556 |
claims a credit under section 5747.27 of the Revised Code. | 557 |
(19) Add any reimbursement received during the taxable year | 558 |
of any amount the taxpayer deducted under division (A)(18) of this | 559 |
section in any previous taxable year to the extent the amount is | 560 |
not otherwise included in Ohio adjusted gross income. | 561 |
(20)(a)(i) Add five-sixths of the amount of depreciation | 562 |
expense allowed by subsection (k) of section 168 of the Internal | 563 |
Revenue Code, including the taxpayer's proportionate or | 564 |
distributive share of the amount of depreciation expense allowed | 565 |
by that subsection to a pass-through entity in which the taxpayer | 566 |
has a direct or indirect ownership interest. | 567 |
(ii) Add five-sixths of the amount of qualifying section 179 | 568 |
depreciation expense, including a person's proportionate or | 569 |
distributive share of the amount of qualifying section 179 | 570 |
depreciation expense allowed to any pass-through entity in which | 571 |
the person has a direct or indirect ownership. For the purposes of | 572 |
this division, "qualifying section 179 depreciation expense" means | 573 |
the difference between (I) the amount of depreciation expense | 574 |
directly or indirectly allowed to the taxpayer under section 179 | 575 |
of the Internal Revenue Code, and (II) the amount of depreciation | 576 |
expense directly or indirectly allowed to the taxpayer under | 577 |
section 179 of the Internal Revenue Code as that section existed | 578 |
on December 31, 2002. | 579 |
The tax commissioner, under procedures established by the | 580 |
commissioner, may waive the add-backs related to a pass-through | 581 |
entity if the taxpayer owns, directly or indirectly, less than | 582 |
five per cent of the pass-through entity. | 583 |
(b) Nothing in division (A)(20) of this section shall be | 584 |
construed to adjust or modify the adjusted basis of any asset. | 585 |
(c) To the extent the add-back required under division | 586 |
(A)(20)(a) of this section is attributable to property generating | 587 |
nonbusiness income or loss allocated under section 5747.20 of the | 588 |
Revised Code, the add-back shall be sitused to the same location | 589 |
as the nonbusiness income or loss generated by the property for | 590 |
the purpose of determining the credit under division (A) of | 591 |
section 5747.05 of the Revised Code. Otherwise, the add-back shall | 592 |
be apportioned, subject to one or more of the four alternative | 593 |
methods of apportionment enumerated in section 5747.21 of the | 594 |
Revised Code. | 595 |
(d) For the purposes of division (A) of this section, net | 596 |
operating loss carryback and carryforward shall not include | 597 |
five-sixths of the allowance of any net operating loss deduction | 598 |
carryback or carryforward to the taxable year to the extent such | 599 |
loss resulted from depreciation allowed by section 168(k) of the | 600 |
Internal Revenue Code and by the qualifying section 179 | 601 |
depreciation expense amount. | 602 |
(21)(a) If the taxpayer was required to add an amount under | 603 |
division (A)(20)(a) of this section for a taxable year, deduct | 604 |
one-fifth of the amount so added for each of the five succeeding | 605 |
taxable years. | 606 |
(b) If the amount deducted under division (A)(21)(a) of this | 607 |
section is attributable to an add-back allocated under division | 608 |
(A)(20)(c) of this section, the amount deducted shall be sitused | 609 |
to the same location. Otherwise, the add-back shall be apportioned | 610 |
using the apportionment factors for the taxable year in which the | 611 |
deduction is taken, subject to one or more of the four alternative | 612 |
methods of apportionment enumerated in section 5747.21 of the | 613 |
Revised Code. | 614 |
(c) No deduction is available under division (A)(21)(a) of | 615 |
this section with regard to any depreciation allowed by section | 616 |
168(k) of the Internal Revenue Code and by the qualifying section | 617 |
179 depreciation expense amount to the extent that such | 618 |
depreciation resulted in or increased a federal net operating loss | 619 |
carryback or carryforward to a taxable year to which division | 620 |
(A)(20)(d) of this section does not apply. | 621 |
(22) Deduct, to the extent not otherwise deducted or excluded | 622 |
in computing federal or Ohio adjusted gross income for the taxable | 623 |
year, the amount the taxpayer received during the taxable year as | 624 |
reimbursement for life insurance premiums under section 5919.31 of | 625 |
the Revised Code. | 626 |
(23) Deduct, to the extent not otherwise deducted or excluded | 627 |
in computing federal or Ohio adjusted gross income for the taxable | 628 |
year, the amount the taxpayer received during the taxable year as | 629 |
a death benefit paid by the adjutant general under section 5919.33 | 630 |
of the Revised Code. | 631 |
(24) Deduct, to the extent included in federal adjusted gross | 632 |
income and not otherwise allowable as a deduction or exclusion in | 633 |
computing federal or Ohio adjusted gross income for the taxable | 634 |
year, military pay and allowances received by the taxpayer during | 635 |
the taxable year for active duty service in the United States | 636 |
army, air force, navy, marine corps, or coast guard or reserve | 637 |
components thereof or the national guard. The deduction may not be | 638 |
claimed for military pay and allowances received by the taxpayer | 639 |
while the taxpayer is stationed in this state. | 640 |
(25) Deduct, to the extent not otherwise allowable as a | 641 |
deduction or exclusion in computing federal or Ohio adjusted gross | 642 |
income for the taxable year and not otherwise compensated for by | 643 |
any other source, the amount of qualified organ donation expenses | 644 |
incurred by the taxpayer during the taxable year, not to exceed | 645 |
ten thousand dollars. A taxpayer may deduct qualified organ | 646 |
donation expenses only once for all taxable years beginning with | 647 |
taxable years beginning in 2007. | 648 |
For the purposes of division (A)(25) of this section: | 649 |
(a) "Human organ" means all or any portion of a human liver, | 650 |
pancreas, kidney, intestine, or lung, and any portion of human | 651 |
bone marrow. | 652 |
(b) "Qualified organ donation expenses" means travel | 653 |
expenses, lodging expenses, and wages and salary forgone by a | 654 |
taxpayer in connection with the taxpayer's donation, while living, | 655 |
of one or more of the taxpayer's human organs to another human | 656 |
being. | 657 |
(26) Deduct, to the extent not otherwise deducted or excluded | 658 |
in computing federal or Ohio adjusted gross income for the taxable | 659 |
year, amounts received by the taxpayer as retired military | 660 |
personnel pay for service in the United States army, navy, air | 661 |
force, coast guard, or marine corps or reserve components thereof, | 662 |
or the national guard, or received by the surviving spouse or | 663 |
former spouse of such a taxpayer under the survivor benefit plan | 664 |
on account of such a taxpayer's death. If the taxpayer receives | 665 |
income on account of retirement paid under the federal civil | 666 |
service retirement system or federal employees retirement system, | 667 |
or under any successor retirement program enacted by the congress | 668 |
of the United States that is established and maintained for | 669 |
retired employees of the United States government, and such | 670 |
retirement income is based, in whole or in part, on credit for | 671 |
the taxpayer's military service, the deduction allowed under this | 672 |
division shall include only that portion of such retirement | 673 |
income that is attributable to the taxpayer's military service, | 674 |
to the extent that portion of such retirement income is otherwise | 675 |
included in federal adjusted gross income and is not otherwise | 676 |
deducted under this section. Any amount deducted under division | 677 |
(A)(26) of this section is not included in a taxpayer's | 678 |
adjusted gross income for the purposes of section 5747.055 of | 679 |
the Revised Code. No amount may be deducted under division | 680 |
(A)(26) of this section on the basis of which a credit was | 681 |
claimed under section 5747.055 of the Revised Code. | 682 |
(27) Deduct, to the extent not otherwise deducted or excluded | 683 |
in computing federal or Ohio adjusted gross income for the taxable | 684 |
year, the amount the taxpayer received during the taxable year | 685 |
from the military injury relief fund created in section 5101.98 of | 686 |
the Revised Code. | 687 |
(B) "Business income" means income, including gain or loss, | 688 |
arising from transactions, activities, and sources in the regular | 689 |
course of a trade or business and includes income, gain, or loss | 690 |
from real property, tangible property, and intangible property if | 691 |
the acquisition, rental, management, and disposition of the | 692 |
property constitute integral parts of the regular course of a | 693 |
trade or business operation. "Business income" includes income, | 694 |
including gain or loss, from a partial or complete liquidation of | 695 |
a business, including, but not limited to, gain or loss from the | 696 |
sale or other disposition of goodwill. | 697 |
(C) "Nonbusiness income" means all income other than business | 698 |
income and may include, but is not limited to, compensation, rents | 699 |
and royalties from real or tangible personal property, capital | 700 |
gains, interest, dividends and distributions, patent or copyright | 701 |
royalties, or lottery winnings, prizes, and awards. | 702 |
(D) "Compensation" means any form of remuneration paid to an | 703 |
employee for personal services. | 704 |
(E) "Fiduciary" means a guardian, trustee, executor, | 705 |
administrator, receiver, conservator, or any other person acting | 706 |
in any fiduciary capacity for any individual, trust, or estate. | 707 |
(F) "Fiscal year" means an accounting period of twelve | 708 |
months ending on the last day of any month other than December. | 709 |
(G) "Individual" means any natural person. | 710 |
(H) "Internal Revenue Code" means the "Internal Revenue Code | 711 |
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. | 712 |
(I) "Resident" means any of the following, provided that | 713 |
division (I)(3) of this section applies only to taxable years of a | 714 |
trust beginning in 2002 or thereafter: | 715 |
(1) An individual who is domiciled in this state, subject to | 716 |
section 5747.24 of the Revised Code; | 717 |
(2) The estate of a decedent who at the time of death was | 718 |
domiciled in this state. The domicile tests of section 5747.24 of | 719 |
the Revised Code are not controlling for purposes of division | 720 |
(I)(2) of this section. | 721 |
(3) A trust that, in whole or part, resides in this state. If | 722 |
only part of a trust resides in this state, the trust is a | 723 |
resident only with respect to that part. | 724 |
For the purposes of division (I)(3) of this section: | 725 |
(a) A trust resides in this state for the trust's current | 726 |
taxable year to the extent, as described in division (I)(3)(d) of | 727 |
this section, that the trust consists directly or indirectly, in | 728 |
whole or in part, of assets, net of any related liabilities, that | 729 |
were transferred, or caused to be transferred, directly or | 730 |
indirectly, to the trust by any of the following: | 731 |
(i) A person, a court, or a governmental entity or | 732 |
instrumentality on account of the death of a decedent, but only if | 733 |
the trust is described in division (I)(3)(e)(i) or (ii) of this | 734 |
section; | 735 |
(ii) A person who was domiciled in this state for the | 736 |
purposes of this chapter when the person directly or indirectly | 737 |
transferred assets to an irrevocable trust, but only if at least | 738 |
one of the trust's qualifying beneficiaries is domiciled in this | 739 |
state for the purposes of this chapter during all or some portion | 740 |
of the trust's current taxable year; | 741 |
(iii) A person who was domiciled in this state for the | 742 |
purposes of this chapter when the trust document or instrument or | 743 |
part of the trust document or instrument became irrevocable, but | 744 |
only if at least one of the trust's qualifying beneficiaries is a | 745 |
resident domiciled in this state for the purposes of this chapter | 746 |
during all or some portion of the trust's current taxable year. If | 747 |
a trust document or instrument became irrevocable upon the death | 748 |
of a person who at the time of death was domiciled in this state | 749 |
for purposes of this chapter, that person is a person described in | 750 |
division (I)(3)(a)(iii) of this section. | 751 |
(b) A trust is irrevocable to the extent that the transferor | 752 |
is not considered to be the owner of the net assets of the trust | 753 |
under sections 671 to 678 of the Internal Revenue Code. | 754 |
(c) With respect to a trust other than a charitable lead | 755 |
trust, "qualifying beneficiary" has the same meaning as "potential | 756 |
current beneficiary" as defined in section 1361(e)(2) of the | 757 |
Internal Revenue Code, and with respect to a charitable lead trust | 758 |
"qualifying beneficiary" is any current, future, or contingent | 759 |
beneficiary, but with respect to any trust "qualifying | 760 |
beneficiary" excludes a person or a governmental entity or | 761 |
instrumentality to any of which a contribution would qualify for | 762 |
the charitable deduction under section 170 of the Internal Revenue | 763 |
Code. | 764 |
(d) For the purposes of division (I)(3)(a) of this section, | 765 |
the extent to which a trust consists directly or indirectly, in | 766 |
whole or in part, of assets, net of any related liabilities, that | 767 |
were transferred directly or indirectly, in whole or part, to the | 768 |
trust by any of the sources enumerated in that division shall be | 769 |
ascertained by multiplying the fair market value of the trust's | 770 |
assets, net of related liabilities, by the qualifying ratio, which | 771 |
shall be computed as follows: | 772 |
(i) The first time the trust receives assets, the numerator | 773 |
of the qualifying ratio is the fair market value of those assets | 774 |
at that time, net of any related liabilities, from sources | 775 |
enumerated in division (I)(3)(a) of this section. The denominator | 776 |
of the qualifying ratio is the fair market value of all the | 777 |
trust's assets at that time, net of any related liabilities. | 778 |
(ii) Each subsequent time the trust receives assets, a | 779 |
revised qualifying ratio shall be computed. The numerator of the | 780 |
revised qualifying ratio is the sum of (1) the fair market value | 781 |
of the trust's assets immediately prior to the subsequent | 782 |
transfer, net of any related liabilities, multiplied by the | 783 |
qualifying ratio last computed without regard to the subsequent | 784 |
transfer, and (2) the fair market value of the subsequently | 785 |
transferred assets at the time transferred, net of any related | 786 |
liabilities, from sources enumerated in division (I)(3)(a) of this | 787 |
section. The denominator of the revised qualifying ratio is the | 788 |
fair market value of all the trust's assets immediately after the | 789 |
subsequent transfer, net of any related liabilities. | 790 |
(iii) Whether a transfer to the trust is by or from any of | 791 |
the sources enumerated in division (I)(3)(a) of this section shall | 792 |
be ascertained without regard to the domicile of the trust's | 793 |
beneficiaries. | 794 |
(e) For the purposes of division (I)(3)(a)(i) of this | 795 |
section: | 796 |
(i) A trust is described in division (I)(3)(e)(i) of this | 797 |
section if the trust is a testamentary trust and the testator of | 798 |
that testamentary trust was domiciled in this state at the time of | 799 |
the testator's death for purposes of the taxes levied under | 800 |
Chapter 5731. of the Revised Code. | 801 |
(ii) A trust is described in division (I)(3)(e)(ii) of this | 802 |
section if the transfer is a qualifying transfer described in any | 803 |
of divisions (I)(3)(f)(i) to (vi) of this section, the trust is an | 804 |
irrevocable inter vivos trust, and at least one of the trust's | 805 |
qualifying beneficiaries is domiciled in this state for purposes | 806 |
of this chapter during all or some portion of the trust's current | 807 |
taxable year. | 808 |
(f) For the purposes of division (I)(3)(e)(ii) of this | 809 |
section, a "qualifying transfer" is a transfer of assets, net of | 810 |
any related liabilities, directly or indirectly to a trust, if the | 811 |
transfer is described in any of the following: | 812 |
(i) The transfer is made to a trust, created by the decedent | 813 |
before the decedent's death and while the decedent was domiciled | 814 |
in this state for the purposes of this chapter, and, prior to the | 815 |
death of the decedent, the trust became irrevocable while the | 816 |
decedent was domiciled in this state for the purposes of this | 817 |
chapter. | 818 |
(ii) The transfer is made to a trust to which the decedent, | 819 |
prior to the decedent's death, had directly or indirectly | 820 |
transferred assets, net of any related liabilities, while the | 821 |
decedent was domiciled in this state for the purposes of this | 822 |
chapter, and prior to the death of the decedent the trust became | 823 |
irrevocable while the decedent was domiciled in this state for the | 824 |
purposes of this chapter. | 825 |
(iii) The transfer is made on account of a contractual | 826 |
relationship existing directly or indirectly between the | 827 |
transferor and either the decedent or the estate of the decedent | 828 |
at any time prior to the date of the decedent's death, and the | 829 |
decedent was domiciled in this state at the time of death for | 830 |
purposes of the taxes levied under Chapter 5731. of the Revised | 831 |
Code. | 832 |
(iv) The transfer is made to a trust on account of a | 833 |
contractual relationship existing directly or indirectly between | 834 |
the transferor and another person who at the time of the | 835 |
decedent's death was domiciled in this state for purposes of this | 836 |
chapter. | 837 |
(v) The transfer is made to a trust on account of the will of | 838 |
a testator who was domiciled in this state at the time of the | 839 |
testator's death for purposes of the taxes levied under Chapter | 840 |
5731. of the Revised Code. | 841 |
(vi) The transfer is made to a trust created by or caused to | 842 |
be created by a court, and the trust was directly or indirectly | 843 |
created in connection with or as a result of the death of an | 844 |
individual who, for purposes of the taxes levied under Chapter | 845 |
5731. of the Revised Code, was domiciled in this state at the time | 846 |
of the individual's death. | 847 |
(g) The tax commissioner may adopt rules to ascertain the | 848 |
part of a trust residing in this state. | 849 |
(J) "Nonresident" means an individual or estate that is not a | 850 |
resident. An individual who is a resident for only part of a | 851 |
taxable year is a nonresident for the remainder of that taxable | 852 |
year. | 853 |
(K) "Pass-through entity" has the same meaning as in section | 854 |
5733.04 of the Revised Code. | 855 |
(L) "Return" means the notifications and reports required to | 856 |
be filed pursuant to this chapter for the purpose of reporting the | 857 |
tax due and includes declarations of estimated tax when so | 858 |
required. | 859 |
(M) "Taxable year" means the calendar year or the taxpayer's | 860 |
fiscal year ending during the calendar year, or fractional part | 861 |
thereof, upon which the adjusted gross income is calculated | 862 |
pursuant to this chapter. | 863 |
(N) "Taxpayer" means any person subject to the tax imposed by | 864 |
section 5747.02 of the Revised Code or any pass-through entity | 865 |
that makes the election under division (D) of section 5747.08 of | 866 |
the Revised Code. | 867 |
(O) "Dependents" means dependents as defined in the Internal | 868 |
Revenue Code and as claimed in the taxpayer's federal income tax | 869 |
return for the taxable year or which the taxpayer would have been | 870 |
permitted to claim had the taxpayer filed a federal income tax | 871 |
return. | 872 |
(P) "Principal county of employment" means, in the case of a | 873 |
nonresident, the county within the state in which a taxpayer | 874 |
performs services for an employer or, if those services are | 875 |
performed in more than one county, the county in which the major | 876 |
portion of the services are performed. | 877 |
(Q) As used in sections 5747.50 to 5747.55 of the Revised | 878 |
Code: | 879 |
(1) "Subdivision" means any county, municipal corporation, | 880 |
park district, or township. | 881 |
(2) "Essential local government purposes" includes all | 882 |
functions that any subdivision is required by general law to | 883 |
exercise, including like functions that are exercised under a | 884 |
charter adopted pursuant to the Ohio Constitution. | 885 |
(R) "Overpayment" means any amount already paid that exceeds | 886 |
the figure determined to be the correct amount of the tax. | 887 |
(S) "Taxable income" or "Ohio taxable income" applies only to | 888 |
estates and trusts, and means federal taxable income, as defined | 889 |
and used in the Internal Revenue Code, adjusted as follows: | 890 |
(1) Add interest or dividends, net of ordinary, necessary, | 891 |
and reasonable expenses not deducted in computing federal taxable | 892 |
income, on obligations or securities of any state or of any | 893 |
political subdivision or authority of any state, other than this | 894 |
state and its subdivisions and authorities, but only to the extent | 895 |
that such net amount is not otherwise includible in Ohio taxable | 896 |
income and is described in either division (S)(1)(a) or (b) of | 897 |
this section: | 898 |
(a) The net amount is not attributable to the S portion of an | 899 |
electing small business trust and has not been distributed to | 900 |
beneficiaries for the taxable year; | 901 |
(b) The net amount is attributable to the S portion of an | 902 |
electing small business trust for the taxable year. | 903 |
(2) Add interest or dividends, net of ordinary, necessary, | 904 |
and reasonable expenses not deducted in computing federal taxable | 905 |
income, on obligations of any authority, commission, | 906 |
instrumentality, territory, or possession of the United States to | 907 |
the extent that the interest or dividends are exempt from federal | 908 |
income taxes but not from state income taxes, but only to the | 909 |
extent that such net amount is not otherwise includible in Ohio | 910 |
taxable income and is described in either division (S)(1)(a) or | 911 |
(b) of this section; | 912 |
(3) Add the amount of personal exemption allowed to the | 913 |
estate pursuant to section 642(b) of the Internal Revenue Code; | 914 |
(4) Deduct interest or dividends, net of related expenses | 915 |
deducted in computing federal taxable income, on obligations of | 916 |
the United States and its territories and possessions or of any | 917 |
authority, commission, or instrumentality of the United States to | 918 |
the extent that the interest or dividends are exempt from state | 919 |
taxes under the laws of the United States, but only to the extent | 920 |
that such amount is included in federal taxable income and is | 921 |
described in either division (S)(1)(a) or (b) of this section; | 922 |
(5) Deduct the amount of wages and salaries, if any, not | 923 |
otherwise allowable as a deduction but that would have been | 924 |
allowable as a deduction in computing federal taxable income for | 925 |
the taxable year, had the targeted jobs credit allowed under | 926 |
sections 38, 51, and 52 of the Internal Revenue Code not been in | 927 |
effect, but only to the extent such amount relates either to | 928 |
income included in federal taxable income for the taxable year or | 929 |
to income of the S portion of an electing small business trust for | 930 |
the taxable year; | 931 |
(6) Deduct any interest or interest equivalent, net of | 932 |
related expenses deducted in computing federal taxable income, on | 933 |
public obligations and purchase obligations, but only to the | 934 |
extent that such net amount relates either to income included in | 935 |
federal taxable income for the taxable year or to income of the S | 936 |
portion of an electing small business trust for the taxable year; | 937 |
(7) Add any loss or deduct any gain resulting from sale, | 938 |
exchange, or other disposition of public obligations to the extent | 939 |
that such loss has been deducted or such gain has been included in | 940 |
computing either federal taxable income or income of the S portion | 941 |
of an electing small business trust for the taxable year; | 942 |
(8) Except in the case of the final return of an estate, add | 943 |
any amount deducted by the taxpayer on both its Ohio estate tax | 944 |
return pursuant to section 5731.14 of the Revised Code, and on its | 945 |
federal income tax return in determining federal taxable income; | 946 |
(9)(a) Deduct any amount included in federal taxable income | 947 |
solely because the amount represents a reimbursement or refund of | 948 |
expenses that in a previous year the decedent had deducted as an | 949 |
itemized deduction pursuant to section 63 of the Internal Revenue | 950 |
Code and applicable treasury regulations. The deduction otherwise | 951 |
allowed under division (S)(9)(a) of this section shall be reduced | 952 |
to the extent the reimbursement is attributable to an amount the | 953 |
taxpayer or decedent deducted under this section in any taxable | 954 |
year. | 955 |
(b) Add any amount not otherwise included in Ohio taxable | 956 |
income for any taxable year to the extent that the amount is | 957 |
attributable to the recovery during the taxable year of any amount | 958 |
deducted or excluded in computing federal or Ohio taxable income | 959 |
in any taxable year, but only to the extent such amount has not | 960 |
been distributed to beneficiaries for the taxable year. | 961 |
(10) Deduct any portion of the deduction described in section | 962 |
1341(a)(2) of the Internal Revenue Code, for repaying previously | 963 |
reported income received under a claim of right, that meets both | 964 |
of the following requirements: | 965 |
(a) It is allowable for repayment of an item that was | 966 |
included in the taxpayer's taxable income or the decedent's | 967 |
adjusted gross income for a prior taxable year and did not qualify | 968 |
for a credit under division (A) or (B) of section 5747.05 of the | 969 |
Revised Code for that year. | 970 |
(b) It does not otherwise reduce the taxpayer's taxable | 971 |
income or the decedent's adjusted gross income for the current or | 972 |
any other taxable year. | 973 |
(11) Add any amount claimed as a credit under section | 974 |
5747.059 of the Revised Code to the extent that the amount | 975 |
satisfies either of the following: | 976 |
(a) The amount was deducted or excluded from the computation | 977 |
of the taxpayer's federal taxable income as required to be | 978 |
reported for the taxpayer's taxable year under the Internal | 979 |
Revenue Code; | 980 |
(b) The amount resulted in a reduction in the taxpayer's | 981 |
federal taxable income as required to be reported for any of the | 982 |
taxpayer's taxable years under the Internal Revenue Code. | 983 |
(12) Deduct any amount, net of related expenses deducted in | 984 |
computing federal taxable income, that a trust is required to | 985 |
report as farm income on its federal income tax return, but only | 986 |
if the assets of the trust include at least ten acres of land | 987 |
satisfying the definition of "land devoted exclusively to | 988 |
agricultural use" under section 5713.30 of the Revised Code, | 989 |
regardless of whether the land is valued for tax purposes as such | 990 |
land under sections 5713.30 to 5713.38 of the Revised Code. If the | 991 |
trust is a pass-through entity investor, section 5747.231 of the | 992 |
Revised Code applies in ascertaining if the trust is eligible to | 993 |
claim the deduction provided by division (S)(12) of this section | 994 |
in connection with the pass-through entity's farm income. | 995 |
Except for farm income attributable to the S portion of an | 996 |
electing small business trust, the deduction provided by division | 997 |
(S)(12) of this section is allowed only to the extent that the | 998 |
trust has not distributed such farm income. Division (S)(12) of | 999 |
this section applies only to taxable years of a trust beginning in | 1000 |
2002 or thereafter. | 1001 |
(13) Add the net amount of income described in section 641(c) | 1002 |
of the Internal Revenue Code to the extent that amount is not | 1003 |
included in federal taxable income. | 1004 |
(14) Add or deduct the amount the taxpayer would be required | 1005 |
to add or deduct under division (A)(20) or (21) of this section if | 1006 |
the taxpayer's Ohio taxable income were computed in the same | 1007 |
manner as an individual's Ohio adjusted gross income is computed | 1008 |
under this section. In the case of a trust, division (S)(14) of | 1009 |
this section applies only to any of the trust's taxable years | 1010 |
beginning in 2002 or thereafter. | 1011 |
(T) "School district income" and "school district income tax" | 1012 |
have the same meanings as in section 5748.01 of the Revised Code. | 1013 |
(U) As used in divisions (A)(8), (A)(9), (S)(6), and (S)(7) | 1014 |
of this section, "public obligations," "purchase obligations," and | 1015 |
"interest or interest equivalent" have the same meanings as in | 1016 |
section 5709.76 of the Revised Code. | 1017 |
(V) "Limited liability company" means any limited liability | 1018 |
company formed under Chapter 1705. of the Revised Code or under | 1019 |
the laws of any other state. | 1020 |
(W) "Pass-through entity investor" means any person who, | 1021 |
during any portion of a taxable year of a pass-through entity, is | 1022 |
a partner, member, shareholder, or equity investor in that | 1023 |
pass-through entity. | 1024 |
(X) "Banking day" has the same meaning as in section 1304.01 | 1025 |
of the Revised Code. | 1026 |
(Y) "Month" means a calendar month. | 1027 |
(Z) "Quarter" means the first three months, the second three | 1028 |
months, the third three months, or the last three months of the | 1029 |
taxpayer's taxable year. | 1030 |
(AA)(1) "Eligible institution" means a state university or | 1031 |
state institution of higher education as defined in section | 1032 |
3345.011 of the Revised Code, or a private, nonprofit college, | 1033 |
university, or other post-secondary institution located in this | 1034 |
state that possesses a certificate of authorization issued by the | 1035 |
Ohio board of regents pursuant to Chapter 1713. of the Revised | 1036 |
Code or a certificate of registration issued by the state board of | 1037 |
career colleges and schools under Chapter 3332. of the Revised | 1038 |
Code. | 1039 |
(2) "Qualified tuition and fees" means tuition and fees | 1040 |
imposed by an eligible institution as a condition of enrollment or | 1041 |
attendance, not exceeding two thousand five hundred dollars in | 1042 |
each of the individual's first two years of post-secondary | 1043 |
education. If the individual is a part-time student, "qualified | 1044 |
tuition and fees" includes tuition and fees paid for the academic | 1045 |
equivalent of the first two years of post-secondary education | 1046 |
during a maximum of five taxable years, not exceeding a total of | 1047 |
five thousand dollars. "Qualified tuition and fees" does not | 1048 |
include: | 1049 |
(a) Expenses for any course or activity involving sports, | 1050 |
games, or hobbies unless the course or activity is part of the | 1051 |
individual's degree or diploma program; | 1052 |
(b) The cost of books, room and board, student activity fees, | 1053 |
athletic fees, insurance expenses, or other expenses unrelated to | 1054 |
the individual's academic course of instruction; | 1055 |
(c) Tuition, fees, or other expenses paid or reimbursed | 1056 |
through an employer, scholarship, grant in aid, or other | 1057 |
educational benefit program. | 1058 |
(BB)(1) "Modified business income" means the business income | 1059 |
included in a trust's Ohio taxable income after such taxable | 1060 |
income is first reduced by the qualifying trust amount, if any. | 1061 |
(2) "Qualifying trust amount" of a trust means capital gains | 1062 |
and losses from the sale, exchange, or other disposition of equity | 1063 |
or ownership interests in, or debt obligations of, a qualifying | 1064 |
investee to the extent included in the trust's Ohio taxable | 1065 |
income, but only if the following requirements are satisfied: | 1066 |
(a) The book value of the qualifying investee's physical | 1067 |
assets in this state and everywhere, as of the last day of the | 1068 |
qualifying investee's fiscal or calendar year ending immediately | 1069 |
prior to the date on which the trust recognizes the gain or loss, | 1070 |
is available to the trust. | 1071 |
(b) The requirements of section 5747.011 of the Revised Code | 1072 |
are satisfied for the trust's taxable year in which the trust | 1073 |
recognizes the gain or loss. | 1074 |
Any gain or loss that is not a qualifying trust amount is | 1075 |
modified business income, qualifying investment income, or | 1076 |
modified nonbusiness income, as the case may be. | 1077 |
(3) "Modified nonbusiness income" means a trust's Ohio | 1078 |
taxable income other than modified business income, other than the | 1079 |
qualifying trust amount, and other than qualifying investment | 1080 |
income, as defined in section 5747.012 of the Revised Code, to the | 1081 |
extent such qualifying investment income is not otherwise part of | 1082 |
modified business income. | 1083 |
(4) "Modified Ohio taxable income" applies only to trusts, | 1084 |
and means the sum of the amounts described in divisions (BB)(4)(a) | 1085 |
to (c) of this section: | 1086 |
(a) The fraction, calculated under section 5747.013, and | 1087 |
applying section 5747.231 of the Revised Code, multiplied by the | 1088 |
sum of the following amounts: | 1089 |
(i) The trust's modified business income; | 1090 |
(ii) The trust's qualifying investment income, as defined in | 1091 |
section 5747.012 of the Revised Code, but only to the extent the | 1092 |
qualifying investment income does not otherwise constitute | 1093 |
modified business income and does not otherwise constitute a | 1094 |
qualifying trust amount. | 1095 |
(b) The qualifying trust amount multiplied by a fraction, the | 1096 |
numerator of which is the sum of the book value of the qualifying | 1097 |
investee's physical assets in this state on the last day of the | 1098 |
qualifying investee's fiscal or calendar year ending immediately | 1099 |
prior to the day on which the trust recognizes the qualifying | 1100 |
trust amount, and the denominator of which is the sum of the book | 1101 |
value of the qualifying investee's total physical assets | 1102 |
everywhere on the last day of the qualifying investee's fiscal or | 1103 |
calendar year ending immediately prior to the day on which the | 1104 |
trust recognizes the qualifying trust amount. If, for a taxable | 1105 |
year, the trust recognizes a qualifying trust amount with respect | 1106 |
to more than one qualifying investee, the amount described in | 1107 |
division (BB)(4)(b) of this section shall equal the sum of the | 1108 |
products so computed for each such qualifying investee. | 1109 |
(c)(i) With respect to a trust or portion of a trust that is | 1110 |
a resident as ascertained in accordance with division (I)(3)(d) of | 1111 |
this section, its modified nonbusiness income. | 1112 |
(ii) With respect to a trust or portion of a trust that is | 1113 |
not a resident as ascertained in accordance with division | 1114 |
(I)(3)(d) of this section, the amount of its modified nonbusiness | 1115 |
income satisfying the descriptions in divisions (B)(2) to (5) of | 1116 |
section 5747.20 of the Revised Code, except as otherwise provided | 1117 |
in division (BB)(4)(c)(ii) of this section. With respect to a | 1118 |
trust or portion of a trust that is not a resident as ascertained | 1119 |
in accordance with division (I)(3)(d) of this section, the trust's | 1120 |
portion of modified nonbusiness income recognized from the sale, | 1121 |
exchange, or other disposition of a debt interest in or equity | 1122 |
interest in a section 5747.212 entity, as defined in section | 1123 |
5747.212 of the Revised Code, without regard to division (A) of | 1124 |
that section, shall not be allocated to this state in accordance | 1125 |
with section 5747.20 of the Revised Code but shall be apportioned | 1126 |
to this state in accordance with division (B) of section 5747.212 | 1127 |
of the Revised Code without regard to division (A) of that | 1128 |
section. | 1129 |
If the allocation and apportionment of a trust's income under | 1130 |
divisions (BB)(4)(a) and (c) of this section do not fairly | 1131 |
represent the modified Ohio taxable income of the trust in this | 1132 |
state, the alternative methods described in division (C) of | 1133 |
section 5747.21 of the Revised Code may be applied in the manner | 1134 |
and to the same extent provided in that section. | 1135 |
(5)(a) Except as set forth in division (BB)(5)(b) of this | 1136 |
section, "qualifying investee" means a person in which a trust has | 1137 |
an equity or ownership interest, or a person or unit of government | 1138 |
the debt obligations of either of which are owned by a trust. For | 1139 |
the purposes of division (BB)(2)(a) of this section and for the | 1140 |
purpose of computing the fraction described in division (BB)(4)(b) | 1141 |
of this section, all of the following apply: | 1142 |
(i) If the qualifying investee is a member of a qualifying | 1143 |
controlled group on the last day of the qualifying investee's | 1144 |
fiscal or calendar year ending immediately prior to the date on | 1145 |
which the trust recognizes the gain or loss, then "qualifying | 1146 |
investee" includes all persons in the qualifying controlled group | 1147 |
on such last day. | 1148 |
(ii) If the qualifying investee, or if the qualifying | 1149 |
investee and any members of the qualifying controlled group of | 1150 |
which the qualifying investee is a member on the last day of the | 1151 |
qualifying investee's fiscal or calendar year ending immediately | 1152 |
prior to the date on which the trust recognizes the gain or loss, | 1153 |
separately or cumulatively own, directly or indirectly, on the | 1154 |
last day of the qualifying investee's fiscal or calendar year | 1155 |
ending immediately prior to the date on which the trust recognizes | 1156 |
the qualifying trust amount, more than fifty per cent of the | 1157 |
equity of a pass-through entity, then the qualifying investee and | 1158 |
the other members are deemed to own the proportionate share of the | 1159 |
pass-through entity's physical assets which the pass-through | 1160 |
entity directly or indirectly owns on the last day of the | 1161 |
pass-through entity's calendar or fiscal year ending within or | 1162 |
with the last day of the qualifying investee's fiscal or calendar | 1163 |
year ending immediately prior to the date on which the trust | 1164 |
recognizes the qualifying trust amount. | 1165 |
(iii) For the purposes of division (BB)(5)(a)(iii) of this | 1166 |
section, "upper level pass-through entity" means a pass-through | 1167 |
entity directly or indirectly owning any equity of another | 1168 |
pass-through entity, and "lower level pass-through entity" means | 1169 |
that other pass-through entity. | 1170 |
An upper level pass-through entity, whether or not it is also | 1171 |
a qualifying investee, is deemed to own, on the last day of the | 1172 |
upper level pass-through entity's calendar or fiscal year, the | 1173 |
proportionate share of the lower level pass-through entity's | 1174 |
physical assets that the lower level pass-through entity directly | 1175 |
or indirectly owns on the last day of the lower level pass-through | 1176 |
entity's calendar or fiscal year ending within or with the last | 1177 |
day of the upper level pass-through entity's fiscal or calendar | 1178 |
year. If the upper level pass-through entity directly and | 1179 |
indirectly owns less than fifty per cent of the equity of the | 1180 |
lower level pass-through entity on each day of the upper level | 1181 |
pass-through entity's calendar or fiscal year in which or with | 1182 |
which ends the calendar or fiscal year of the lower level | 1183 |
pass-through entity and if, based upon clear and convincing | 1184 |
evidence, complete information about the location and cost of the | 1185 |
physical assets of the lower pass-through entity is not available | 1186 |
to the upper level pass-through entity, then solely for purposes | 1187 |
of ascertaining if a gain or loss constitutes a qualifying trust | 1188 |
amount, the upper level pass-through entity shall be deemed as | 1189 |
owning no equity of the lower level pass-through entity for each | 1190 |
day during the upper level pass-through entity's calendar or | 1191 |
fiscal year in which or with which ends the lower level | 1192 |
pass-through entity's calendar or fiscal year. Nothing in division | 1193 |
(BB)(5)(a)(iii) of this section shall be construed to provide for | 1194 |
any deduction or exclusion in computing any trust's Ohio taxable | 1195 |
income. | 1196 |
(b) With respect to a trust that is not a resident for the | 1197 |
taxable year and with respect to a part of a trust that is not a | 1198 |
resident for the taxable year, "qualifying investee" for that | 1199 |
taxable year does not include a C corporation if both of the | 1200 |
following apply: | 1201 |
(i) During the taxable year the trust or part of the trust | 1202 |
recognizes a gain or loss from the sale, exchange, or other | 1203 |
disposition of equity or ownership interests in, or debt | 1204 |
obligations of, the C corporation. | 1205 |
(ii) Such gain or loss constitutes nonbusiness income. | 1206 |
(6) "Available" means information is such that a person is | 1207 |
able to learn of the information by the due date plus extensions, | 1208 |
if any, for filing the return for the taxable year in which the | 1209 |
trust recognizes the gain or loss. | 1210 |
(CC) "Qualifying controlled group" has the same meaning as in | 1211 |
section 5733.04 of the Revised Code. | 1212 |
(DD) "Related member" has the same meaning as in section | 1213 |
5733.042 of the Revised Code. | 1214 |
(EE)(1) For the purposes of division (EE) of this section: | 1215 |
(a) "Qualifying person" means any person other than a | 1216 |
qualifying corporation. | 1217 |
(b) "Qualifying corporation" means any person classified for | 1218 |
federal income tax purposes as an association taxable as a | 1219 |
corporation, except either of the following: | 1220 |
(i) A corporation that has made an election under subchapter | 1221 |
S, chapter one, subtitle A, of the Internal Revenue Code for its | 1222 |
taxable year ending within, or on the last day of, the investor's | 1223 |
taxable year; | 1224 |
(ii) A subsidiary that is wholly owned by any corporation | 1225 |
that has made an election under subchapter S, chapter one, | 1226 |
subtitle A of the Internal Revenue Code for its taxable year | 1227 |
ending within, or on the last day of, the investor's taxable year. | 1228 |
(2) For the purposes of this chapter, unless expressly stated | 1229 |
otherwise, no qualifying person indirectly owns any asset directly | 1230 |
or indirectly owned by any qualifying corporation. | 1231 |
(FF) For purposes of this chapter and Chapter 5751. of the | 1232 |
Revised Code: | 1233 |
(1) "Trust" does not include a qualified pre-income tax | 1234 |
trust. | 1235 |
(2) A "qualified pre-income tax trust" is any pre-income tax | 1236 |
trust that makes a qualifying pre-income tax trust election as | 1237 |
described in division (FF)(3) of this section. | 1238 |
(3) A "qualifying pre-income tax trust election" is an | 1239 |
election by a pre-income tax trust to subject to the tax imposed | 1240 |
by section 5751.02 of the Revised Code the pre-income tax trust | 1241 |
and all pass-through entities of which the trust owns or | 1242 |
controls, directly, indirectly, or constructively through related | 1243 |
interests, five per cent or more of the ownership or equity | 1244 |
interests. The trustee shall notify the tax commissioner in | 1245 |
writing of the election on or before April 15, 2006. The | 1246 |
election, if timely made, shall be effective on and after January | 1247 |
1, 2006, and shall apply for all tax periods and tax years until | 1248 |
revoked by the trustee of the trust. | 1249 |
(4) A "pre-income tax trust" is a trust that satisfies all of | 1250 |
the following requirements: | 1251 |
(a) The document or instrument creating the trust was | 1252 |
executed by the grantor before January 1, 1972; | 1253 |
(b) The trust became irrevocable upon the creation of the | 1254 |
trust; and | 1255 |
(c) The grantor was domiciled in this state at the time the | 1256 |
trust was created. | 1257 |
Sec. 5815.31. Unless the trust or separation agreement | 1258 |
provides otherwise, if, after executing a trust in which the | 1259 |
grantor reserves to self a power to alter, amend, revoke, or | 1260 |
terminate the provisions of the trust, a grantor is divorced, | 1261 |
obtains a dissolution of marriage, has the grantor's marriage | 1262 |
annulled, or, upon actual separation from the grantor's spouse, | 1263 |
enters into a separation agreement pursuant to which the parties | 1264 |
intend to fully and finally settle their prospective property | 1265 |
rights in the property of the other, whether by expected | 1266 |
inheritance or otherwise, the spouse or former spouse of the | 1267 |
grantor shall be deemed to have predeceased the grantor, and any | 1268 |
provision in the trust conferring any beneficial interest or a | 1269 |
general or special power of appointment on the spouse or former | 1270 |
spouse or nominating the spouse or former spouse as trustee or | 1271 |
trust advisor shall be revoked. If the grantor remarries the | 1272 |
grantor's former spouse or if the separation agreement is | 1273 |
terminated, the spouse shall not be deemed to have predeceased the | 1274 |
grantor, and any provision in the trust conferring any beneficial | 1275 |
interest or a general or special power of appointment on the | 1276 |
spouse or former spouse or nominating the spouse or former spouse | 1277 |
as trustee or trust advisor shall not be revoked. | 1278 |
Section 2. That existing sections 2101.16, 2107.76, 2111.05, | 1279 |
2111.18, 2305.19, 5747.01, and 5815.31 of the Revised Code are | 1280 |
hereby repealed. | 1281 |