SALT Report 2142 – The Ohio Department of Taxation issued guidance for quarterly taxpayers regarding recent legislative changes to the $1 million exclusion on the commercial activity tax return. Prior to the change, quarterly taxpayers could exclude $250,000 on each of the four quarterly returns due in the calendar year. If there was an unused amount the taxpayer could be carry over that amount for the next three quarters.
However, effective January 1, 2013 taxpayers that pay on a quarterly basis are required to exclude the $1 million of taxable gross receipts on the first quarterly return and carry-forward any unused portion on subsequent quarterly returns within the same calendar year. If there is an unused amount it can no longer be carried forward into the next calendar year.
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