Dealer In Intangibles Tax Return - 2011 (Page 4 of 20) in pdf

Receipts from business originating in one ofﬁ ce and consum-

increase or decrease from book value to fair value is carried

mated at another ofﬁ ce shall be divided equitably between

to the summary sheet.

such ofﬁ ces, and a special memorandum or schedule must

Fair Value Claim

be furnished disclosing the amount of such receipts together

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

with the ofﬁ ce location.

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

Exhibit C

a claim for deduction from book value must be submitted in

In the case of a dealer engaged primarily in the business

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

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

disclose the reasons and computations for determining the

receipts shall consist of the aggregate amount of commis-

claimed fair value. The burden of substantiating the claimed

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

fair value rests with the taxpayer.

100% of commissions charged everywhere. The billing ad-

Exchange Memberships

dress should be used to determine where the commission

Memberships and stock exchange seats used in business

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

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

percentage obtained from this calculation.

The difference between the book value and the fair value at

Exhibit D

Dec. 31 will be carried to the summary sheet.

A dealer in intangibles that predominately makes loans and

Unincorporated Dealers in Intangibles

carries a reserve on its books for receivables will use Exhibit

Unincorporated dealers in intangibles may deduct invest-

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

ments exempt under Ohio law from the value of capital

at Dec. 31 for those dealers that carry a reserve. The for-

employed, provided such investments are held on Dec. 31.

mula develops a uniform amount of reserves taken against

Tax-exempt investments include obligations issued and

the gross accounts receivable balance. The calculation

backed by the federal government, territories or districts and

ﬁ rst takes the total amount of bad debts charged off for the

the following Ohio bonds: Vietnam War Bonus, Turnpike, Ma-

preceding ﬁ ve years, less total recoveries for the preceding

jor Thoroughfare Construction, Bridge Commission, Highway

ﬁ ve years. This total is divided by the total amount of loans

Improvement Construction, Underground Parking, Capital

effected, discounted and renewed for the preceding ﬁ ve

Improvement Construction, General Obligation, Public Hous-

years for which the dealer maintains a bad debt reserve. To

ing Authority, etc. Municipal bonds are not exempt.

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

correction factor. This total percentage will be applied to the

When taxable property has been converted into nontaxable

gross amount of accounts and notes receivable listed on the

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

current year’s balance sheet. The calculated allowable bad

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

debt reserve is compared to the bad debt reserve taken on

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

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

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

the two is carried to the summary sheet as an increase or

decrease to fair value.

Ohio Form 982

Ohio form 982 is to be submitted by each dealer in intangibles

Ohio Form 937DI

maintaining an ofﬁ ce in more than one Ohio county. The

The tax commissioner has prescribed composite annual al-

taxpayer should list each county it maintains ofﬁ ces in and

lowances for computing the fair value of various depreciable

the total amount of gross receipts for that ofﬁ ce. This form

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

does not need to be ﬁ led by a qualifying dealer.

furniture and equipment, leaseholds and autos have been

designated as Class 3 property. Computers and their online

Ohio Form 984

peripheral equipment have been designated as having a

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

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

those taxpayers who list investments on line 2 of the balance

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

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

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

Stand-Alone

31st. The difference between book and market should be

Age

Class 3

Computer Class

listed on the summary sheet.

93.2

75.0

Leased Property

82.8

60.0

Any dealer in intangibles that leases tangible personal

72.4

45.0

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

62.0

30.0

separately list and return such property under the provisions

51.5

15.0

of R.C. Chapter 5727.

42.2

15.0

36.3

15.0

Credits

30.5

15.0

Credit for eligible employee training costs may be claimed

24.6

15.0

against the dealer in intangibles tax liability. See R.C.

10+

18.8

15.0

5725.31.

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Dealer In Intangibles Tax Return - 2011 Page 4

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