Ohio § 5747.21 Apportioning business income or deduction

Ohio Statutes

§ 5747.21 — Apportioning business income or deduction

Ohio § 5747.21

Title 57Taxation

Ch. 5747Income Tax

This text of Ohio § 5747.21 (Apportioning business income or deduction) is published on Counsel Stack Legal Research, covering Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ohio Rev. Code Ann. § 5747.21 (2026).

Text

(A)This section applies solely for the purposes of computing the credit allowed under division (A) of section5747.05of the Revised Code and computing income taxable in this state under division (D) of section5747.08of the Revised Code.

(B)Except as otherwise provided under section5747.212of the Revised Code, all items of business income and business deduction shall be apportioned to this state by multiplying business income by the fraction calculated under division (B)(2) of section5733.05and section5733.057of the Revised Code as if the taxpayer's business were a corporation subject to the tax imposed by section5733.06of the Revised Code.

(C)If the allocation and apportionment provisions of sections5747.20to5747.23of the Revised Code or of any rule adopted by the tax commissioner, do

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(A) This section applies solely for the purposes of computing the credit allowed under division (A) of section5747.05of the Revised Code and computing income taxable in this state under division (D) of section5747.08of the Revised Code.

(B) Except as otherwise provided under section5747.212of the Revised Code, all items of business income and business deduction shall be apportioned to this state by multiplying business income by the fraction calculated under division (B)(2) of section5733.05and section5733.057of the Revised Code as if the taxpayer's business were a corporation subject to the tax imposed by section5733.06of the Revised Code.

(C) If the allocation and apportionment provisions of sections5747.20to5747.23of the Revised Code or of any rule adopted by the tax commissioner, do not fairly represent the extent of business activity in this state of a taxpayer or pass-through entity, the taxpayer or pass-through entity may request, which request must be in writing accompanying a timely filed return or timely filed amended return, or the tax commissioner may require, in respect of all or any part of the business activity, if reasonable, any one or more of the following:

(1) Separate accounting;

(2) The exclusion of one or more factors;

(3) The inclusion of one or more additional factors which will fairly represent the business activity in this state;

(4) The employment of any other method to effectuate an equitable allocation and apportionment of such business in this state. An alternative method will be effective only with approval of the tax commissioner.

The tax commissioner may adopt rules in the manner provided by sections5703.14and5747.18of the Revised Code providing for alternative methods of calculating business income and nonbusiness income applicable to all taxpayers and pass-through entities, to classes of taxpayers and pass-through entities, or only to taxpayers and pass-through entities within a certain industry.