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FT-1120VL

(Rev. 7/00)

Page 2

Instructions

Internal Revenue Code, to the extent that such loss or gain occurred prior to

the first taxable year on which the tax provided for in section 5733.06 of the

In accordance with Ohio Revised Code section 5733.04(I)(3) valuation

Revised Code is computed on the corporation’s net income. For purposes of

limitation is the loss or gain resulting from the sale, exchange or other disposi-

division (I)(3) of this section, the amount of the prior loss or gain shall be

tion of a capital asset or a section 1231 asset to the extent that such loss or

measured by the difference between the original cost or other basis of the

gain occurred prior to the first taxable year on which the franchise tax is

asset and the fair market value as of the beginning of the first taxable year on

computed on the corporation’s net income.

which the tax provided for in section 5733.06 of the Revised Code is com-

puted on the corporation’s net income. At the option of the taxpayer, the

The beginning of the first taxable year on which the franchise tax is computed

amount of the prior loss or gain may be a percentage of the gain or loss,

on the corporation’s net income is the beginning of the taxpayer’s first fran-

which percentage shall be determined by multiplying the gain or loss by a

chise tax accounting period which ended after December 20, 1971 (the date

fraction, the numerator of which is the number of months from the acquisition

of enactment of the net income basis of the franchise tax). See Clyde Williams

of the asset to the beginning of the first taxable year on which the fee pro-

Enterprises, Inc. and Subsidiaries v Limbach , BTA Case No. 85-D-132, May

vided in section 5733.06 of the Revised Code is computed on the

19, 1986

corporation’s net income, and the denominator of which is the number of

months from the acquisition of the asset to the sale, exchange, or other

disposition of the asset. The adjustments described in this division do not

Ohio Revised Code Section 5733.04(I)(3)

apply to any gain or loss where the gain or loss is recognized by a qualifying

Add any loss or deduct any gain resulting from the sale, exchange, or other

taxpayer, as defined in section 5733.0510 of the Revised Code, with respect

to a qualifying taxable event, as defined in that section.

disposition of a capital asset, or an asset described in section 1231 of the

Gains and Losses from the Sale or Exchange of Property used in a Trade or Business (continued)

Kind of Property

Date Acquired

Date Sold

Fraction

Gain

Valuation

*Allocable

*Apportionable

(Month,

or Loss

Limitation

(if necessary, attach description)

(Month,

Gain or Loss

Day, Year)

Column E less

Column F

Total

Form Ft-1120vl - Valuation Limitation On Gains And Losses From Sales Or Exchanges Of Capital Assets Or Irc Section 1231 Assets Page 2

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