Instructions For Ohio Form Ft 1120fi - Ohio Corporation Franchise Tax Report

branches everywhere. Deposits are assigned to branches within

land, by or on behalf of the taxpayer, the value of the building is

and without Ohio in the same manner such assignment is made for

determined in the same manner as if owned by the taxpayer.

regulatory purposes. Qualiﬁ ed institutions can make this election

Gross rents does not include: (1) reasonable amounts payable as

on (1) an original report, (2) an amended report and refund claim

separate charges for water and electric service furnished by the

ﬁ led within the statute of limitations or (3) a timely ﬁ led petition for

lessor, (2) reasonable amounts payable as service charges for

reassessment. The election applies only to the tax year speciﬁ ed

janitorial services furnished by the lessor, (3) reasonable amounts

in the election and can be revoked at any time within the statute of

payable for storage, provided such amounts are payable for space

limitations period.

not designated and not under the control of the taxpayer and (4)

Deﬁ nitions – RC. 5733.056(A)

that portion of any rental payment that is applicable to the space

subleased from the taxpayer and not used by it.

Billing address means the address where any notice, statement

or bill relating to a customer’s account is mailed, as indicated in the

Loan means any extension of credit resulting from direct negotiations

books and records of the taxpayer on the ﬁ rst day of the taxable

between the taxpayer and its customer or the purchase, in whole or

year or on such later date in the taxable year when the customer

in part, of such extension of credit from another. Loans include debt

relationship began.

obligations of subsidiaries, participations, syndications and leases

treated as loans for federal income tax purposes. Loan does not

Borrower or credit cardholder located in Ohio means: (1) a

include properties treated as loans under section 595 of the I.R.C.;

borrower, other than a credit card holder, that is engaged in a trade

futures or forward contracts; options; notional principal contracts

or business and maintains its commercial domicile in Ohio or (2)

such as swaps; credit card receivables, including purchased credit

a borrower that is not engaged in a trade or business, or a credit

card relationships; noninterest-bearing balances due from depositor

cardholder, whose billing address is in Ohio.

institutions; cash items in the process of collection; federal funds

sold; securities purchased under agreements to resell; assets held

Branch means a “domestic branch” as deﬁ ned in section 3 of the

in a trading account; securities; interests in a real estate mortgage

“Federal Deposit Insurance Act,” 64 Stat. 873, 12 U.S.C. 1813(o),

investment conduit or other mortgage-backed or asset-backed

as amended.

security; and other similar items.

Commercial domicile means the principal place from which the

Loan secured by real property means that 50% or more of the

trade or business of the taxpayer is directed or managed. (The term

aggregate value of the collateral used to secure a loan or other

“commercial domicile” is not deﬁ ned in R.C. 5733.056; the deﬁ nition

obligation, when valued at fair market value as of the time the original

here is taken from R.C. 5733.04.)

loan or obligation was incurred, was real property.

Compensation means wages, salaries, commissions and any other

Merchant discount means the fee, or negotiated discount, charged

form of remuneration paid to employees for personal services that

to a merchant by the taxpayer for the privilege of participating

are included in such employee’s gross income under the I.R.C. In the

in a program whereby a credit card is accepted in payment for

case of employees not subject to the I.R.C., such as those employed

merchandise or services sold to the cardholder.

in foreign countries, the determination of whether such payments

would constitute gross income to such employees under the I.R.C.

Participation means an extension of credit in which an undivided

is made as though such employees were subject to the I.R.C.

ownership interest is held on a pro-rata basis in single loan or pool

of loans and related collateral. In a loan participation, the credit

Credit card means a credit, travel or entertainment card.

originator initially makes the loan and then subsequently resells all

or a portion of it to other lenders. The participation may or may not

Credit card issuer’s reimbursement fee means the fee a

be known to the borrower.

taxpayer receives from a merchant’s bank because one of the

persons to whom the taxpayer has issued a credit card has charged

Principal base of operations:

merchandise or services to the credit card.

With respect to an employee, the principal base of operations

means the place of more or less permanent nature from which

Deposits has the meaning given in section 3 of the “Federal Deposit

the employee regularly (a) starts work and to which the employee

Insurance Act,” 64 Stat. 873, 12 U.S.C. 1813(1), as amended.

customarily returns in order to receive instructions from the

Employee means any individual who, under the usual common law

employer, or (b) communicates with the employee’s customers or

rules applicable in determining the employer-employee relationship,

other persons or (c) performs any other functions necessary to the

has the status of an employee of the taxpayer.

exercise of the trade or profession at some other point or points.

Gross rents means the actual sum of money or other consideration

With respect to transportation property, principal base of

payable for the use or possession of property. Gross rents includes:

operations means the place of more or less permanent nature from

(1) any amount payable for the use or possession of real property

which the transportation property is regularly directed or controlled.

or tangible personal property whether designated as a ﬁ xed sum

Qualiﬁ ed institution means a ﬁ nancial institution that has at least

of money or as a percentage of receipts, proﬁ ts, or otherwise, (2)

9% of its deposits in Ohio as of the last day of June before the

any amount payable as additional rent or in lieu of rent, such as

beginning of the tax year and meets one of the following three tests:

interest, taxes, insurance, repairs or any other amount required

to be paid by the terms of a lease or other arrangement and (3) a

1. On or after June 1, 1997 the ﬁ nancial institution has consummated

proportionate part of the cost of any improvement to real property

one or more approved transactions with insured banks with

made by or on behalf of the taxpayer that reverts to the owner

different home states that would qualify under section 102 of the

or lessor upon termination of a lease or other arrangement. The

“Riegle-Neal Interstate Banking and Branching Efﬁ ciency Act of

amount to be included in gross rents is the amount of amortization

1994,” Public Law 103-328, 108 Stat. 2338; or

or depreciation allowed in computing the taxable income base for

2. The ﬁ nancial institution is a federal savings association or federal

the taxable year. However, where a building is erected on leased

savings bank that on or after June 1, 1997 has consummated one

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Instructions For Ohio Form Ft 1120fi - Ohio Corporation Franchise Tax Report - 2012 Page 16

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