Dealer In Intangibles Tax Return Form - Ohio Department Of Taxation

of Ohio and forward it to an Ohio ofﬁ ce must allocate that

Ohio Form 937DI

portion to Ohio. Employees of the dealer who solicit business

The tax commissioner has prescribed composite annual al-

out of state but report to the Ohio ofﬁ ce must also allocate

lowances for computing the fair value of various depreciable

all business to Ohio.

property. For dealers in intangibles, property such as ofﬁ ce

furniture and equipment, leaseholds and autos have been

Receipts from business originating in one ofﬁ ce and consum-

designated as Class 3 property. Computers and their online

mated at another ofﬁ ce shall be divided equitably between

peripheral equipment have been designated as having a

such ofﬁ ces, and a special memorandum or schedule must

ﬁ ve-year class life. Ohio form 937DI is used to arrive at the

be furnished disclosing the amount of such receipts together

fair value. The rates for those classes are listed below. The

with the ofﬁ ce location.

increase or decrease from book value to fair value is carried

to the summary sheet.

Exhibit C

In the case of a dealer engaged primarily in the business

Fair Value Claim

of dealing in securities as principal, broker or both, gross

In the event the fair value of any item of taxable property is

receipts shall consist of the aggregate amount of commis-

less than the book value as reﬂ ected on the balance sheet,

sions charged for business done at each ofﬁ ce, divided by

a claim for deduction from book value must be submitted in

100% of commissions charged everywhere. The billing ad-

writing at the time of ﬁ ling the tax return. The claim should

dress should be used to determine where the commission

disclose the reasons and computations for determining the

should be sitused. Line 3, Exhibit A, is then multiplied by the

claimed fair value. The burden of substantiating the claimed

percentage obtained from this calculation.

fair value rests with the taxpayer.

Exhibit D

Exchange Memberships

A dealer in intangibles that predominately makes loans

Memberships and stock exchange seats used in business

and carries a reserve on its books for receivables will use

must be returned at their fair value as of Dec. 31st annually.

Exhibit D. It is used to establish a fair value for accounts

The difference between the book value and the fair value at

receivable at Dec. 31 for those dealers that carry a reserve.

Dec. 31 will be carried to the summary sheet.

The formula develops a uniform amount of reserves taken

against the gross accounts receivable balance. The cal-

Unincorporated Dealers in Intangibles

culation ﬁ rst takes the total amount of bad debts charged

Unincorporated dealers in intangibles may deduct invest-

off for the preceding ﬁ ve years, less total recoveries for

ments exempt under Ohio law from the value of capital

the preceding ﬁ ve years. This total is divided by the total

employed, provided such investments are held on Dec.

amount of loans effected, discounted and renewed for the

31. Tax-exempt investments include obligations issued

preceding ﬁ ve years for which the dealer maintains a bad

and backed by the federal government, territories or dis-

debt reserve. (A “discounted” loan is a loan on which the

tricts and the following Ohio bonds: Vietnam War Bonus,

interest and other charges are deducted from the face

Turnpike, Major Thoroughfare Construction, Bridge Com-

amount of the loan when the loan is made.) To the resulting

mission, Highway Improvement Construction, Underground

percentage, add 1/2 of 1% as .5% or .005 as a correction

Parking, Capital Improvement Construction, General

factor. This total percentage will be applied to the gross

Obligation, Public Housing Authority, etc. Municipal bonds

amount of accounts and notes receivable listed on the cur-

are not exempt.

rent year’s balance sheet. The calculated allowable bad

When taxable property has been converted into nontaxable

debt reserve is compared to the bad debt reserve taken

bonds and securities after Oct. 31 and is still held on Dec.

on the current year’s balance sheet, and the difference

31, the value of the nontaxable bonds and securities as of

between the two is carried to the summary sheet as an

the date of conversion must be reﬂ ected on line 2 of the

increase or decrease to fair value.

computation of tax on the front page of Ohio form 980.

Stand-Alone

Ohio Form 984

Age

Class 3

Computer Class

Ohio form 984 is to be submitted with Ohio form 980 for

93.2

75.0

those taxpayers who list investments on line 2 of the balance

82.8

60.0

sheet. This form must list the name of the investment, the

72.4

45.0

book value and the market value of the investment at Dec.

62.0

30.0

31st. The difference between book and market should be

51.5

15.0

listed on the summary sheet.

42.2

15.0

36.3

15.0

Leased Property

30.5

15.0

Any dealer in intangibles that leases tangible personal

24.6

15.0

property to a public utility pursuant to R.C. 5727.01(M) must

10+

18.8

15.0

separately list and return such property under the provisions

of R.C. Chapter 5727.

- 4 -

Dealer In Intangibles Tax Return Form - Ohio Department Of Taxation - 2013 Page 4

Related Articles

Related forms

Related Categories