Form It 1140 - Pass-Through Entity And Trust Withholding Tax Return

Do not submit this page with your IT 1140 return.

Important Notes:

Savings and loan holding companies as deﬁ ned in the federal

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“Home Owners Loan Act” that are engaging only in activities

Note 1: Instructions for page 1, Schedule A, line 3. If this pass-

permissible under 12 United States Code (U.S.C.) 1843(k).

through entity or trust has invested in a partnership or limited liability

NOTES

company that also ﬁ led Ohio form IT 1140, this pass-through entity

Persons, other than persons held pursuant to merchant banking

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or trust is not entitled to any payment or credit for this pass-through

authority under 12 U.S.C. 1843(k)(4)(H) or 12 U.S.C. 1843(k)

(4)(I), directly or indirectly “owned” by one or more ﬁ nancial

entity’s or this trust’s proportionate share of tax paid by that investee

institutions, ﬁ nancial holding companies, bank holding compa-

partnership or investee limited liability company.

nies, or savings and loan holding companies, but only if those

Furthermore, this pass-through entity or trust cannot claim such

persons are engaged in activities permissible for a ﬁ nancial

payment as an estimated payment for this pass-through entity’s or

holding company under 12 U.S.C. 1843(k).

trust’s taxable year. However, the pass-through entity or trust can

“pass through” (via the K-1s it will issue) to its qualifying investors

Persons directly or indirectly “owned” by one or more insurance

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or to its qualifying beneﬁ ciaries the pass-through entity’s or trust’s

companies, but only if those persons are authorized to conduct

the business of insurance in this state.

proportionate share of such tax payment that the investee partner-

ship or investee limited liability company paid on behalf of this

Persons that solely facilitate or service one or more “securitiza-

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pass-through entity or trust.

tions” or similar transactions for ﬁ nancial institutions, ﬁ nancial

holding companies, bank holding companies, savings and loan

Note 2: Instructions for page 2, line 4. “Related member” is deﬁ ned

in R.C. 5733.042(A)(6) but is modiﬁ ed by R.C. 5733.40(P). For

holding companies, insurance companies, or persons directly

purposes of the line 4 adjustment, a related member is any busi-

or indirectly “owned” by such businesses.

ness entity or person directly or indirectly related to the taxpayer if

Deﬁ nition of “owned” for this purpose: a person “owns” another

the direct and indirect ownership interests equals or exceeds 40%

entity if the person:

of all ownership interests.

owns at least 50% of the entity’s voting stock (corporations);

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Note 3: Instructions for page 2, line 4. Include on this line all

compensation paid to or for family member employees if the pass-

owns at least 50% of the entity’s membership interests (LLCs);

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through entity owner who is a member of family directly, indirectly

and/or by attribution owns at least 40% of the pass-through entity.

See R.C. 5733.40(A)(3). Do not show on line 6 any amount you

has a beneﬁ cial interest in the entity’s proﬁ ts, surpluses, losses

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show on line 4.

or distributions (partnerships, trusts or other business interests).

Note 4: Instructions for page 3, line 10, column (B). For those

Deﬁ nition of “securitization” for this purpose: Transferring one or

qualifying corporate investors that are not listed below, the tax rate

more assets to one or more persons and then issuing securities

for the taxable year beginning in 2014 is 0%; therefore the pass-

backed by the right to receive payment from the asset or assets

through entity should pay no tax with respect to these corporations.

so transferred.

For those qualifying corporate investors that are listed below and

If you use multiple rates for column B, attach a schedule reﬂ ecting

for qualifying investors that are estates, trusts and pass-through

the computation of tax for each type of investor.

entities, compute the tax at the rate of 8.5%. See R.C. 5733.41.

Financial holding companies as deﬁ ned in the federal “Bank

Fiscal ﬁ lers: Use the rate in effect on the last day of the taxable year.

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Holding Company Act.”

Note 5: Amount of tax credits that will pass through from the qualify-

ing pass-through entity or qualifying trust to each qualifying investor

Bank holding companies as deﬁ ned in the federal “Bank Hold-



or qualifying beneﬁ ciary.

ing Company Act.”

Federal Privacy Act Notice

Because we require you to provide us with a Social Security number, the Federal Privacy

Act of 1974 requires us to inform you that providing us with your Social Security number is

mandatory. Ohio Revised Code sections 5703.05, 5703.057 and 5747.08 authorize us to

request this information. We need your Social Security number in order to administer this tax.

pg. 7

Form It 1140 - Pass-Through Entity And Trust Withholding Tax Return - 2014 Page 7

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