Net profits means a net gain from the operation of a business, profession, enterprise or other activity after provision for all ordinary and necessary expenses either paid or accrued in accordance with the accounting system used by the taxpayer for Federal Income Tax purposes, without deduction of taxes imposed by this Title, federal, state and other taxes based on income; and in the case of an association, without deduction of salaries paid to partners and other owners; provided that for taxable years beginning on or after January 1, 2004, “net profit” for a taxpayer other than an individual, but excluding taxpayers required to file returns under Section 5745.03 of the Ohio Revised Code and sole proprietorships, means adjusted federal taxable income; and “net profit” for a taxpayer who is an individual means the individual’s profit, including profits from rental activity, required to be reported on schedule C, schedule E, or schedule F of the individual’s federal tax return. In the case of a taxpayer who has net profits from a business or profession operated as a sole proprietorship, net profit shall have the same meaning as established above in this definition, except that it shall not include amounts required to be reported by such a taxpayer on Internal Revenue Service Schedules C or F from such sole proprietorship for the taxable year.
(Ord. 7683-05. Passed 2-7-05.)