(a) “Net profit” for a person who is an individual means the individual’s net profit required to be reported on schedule C, schedule E, or schedule F reduced by any net operating loss carried forward. For the purposes of this division, the net operating loss carried forward will be calculated and deducted in the same manner as provided in Section 1803.25 (c) of this chapter .
(b) “Net profit” for a person other than an individual means adjusted federal taxable income reduced by any net operating loss incurred by the person in a taxable year beginning on or after January 1, 2017, subject to the limitations of 1803.25(c) of this section.
(c) (1) The amount of such operating loss shall be deducted from net profit to the extent necessary to reduce municipal taxable income to zero, with any remaining unused portion of the net operating loss carried forward to not more than five consecutive taxable years following the taxable year in which the loss was incurred, but in no case for more years than necessary for the deduction to be fully utilized.
(2) No person shall use the deduction allowed by Section 1803.25(c) of this section to offset qualifying wages.
(3) A. For taxable years beginning in 2018, 2019, 2020, 2021, or 2022, a person may not deduct more than fifty percent (50%) of the amount of the deduction otherwise allowed by Section 1803.25(c).
B. For taxable years beginning in 2023 or thereafter a person may deduct the full amount allowed by Section 1803.25(c) without regard to the limitation of Section 1803.25(c)(3)A.
(4) Any pre 2017 net operating loss carryforward deduction that is available may be utilized before a taxpayer may deduct any amount pursuant to Section 1803.25(c).
(5) Nothing in Section 1803.25(c)(3)A. precludes a person from carrying forward, for use with respect to any return filed for a taxable year beginning after 2018, any amount of net operating loss that was not fully utilized by operation of Section 1803.25(c)(3)A. To the extent that an amount of net operating loss that was not fully utilized in one or more taxable years by operation of Section 1803.02(h)(1) of this chapter is carried forward for use with respect to a return filed for a taxable year beginning in 2019, 2020, 2021, or 2022, the limitation described in Section 1803.25(c)(3)A. shall apply to the amount carried forward.
(d) For the purposes of this chapter and notwithstanding Section 1803.25(b) net profit of a disregarded entity shall not be taxable as against that disregarded entity, but shall instead be included in the net profit of the owner of the disregarded entity.
(e) A publicly traded partnership that is treated as a partnership for federal income tax purposes and that is subject to tax, on its net profits by the City of Brook Park may elect to be treated as a C corporation for City of Brook Park, and shall not be treated as the net profit or income of any owner of the partnership. The election shall be made on the annual return for City of Brook Park. City of Brook Park will treat the publicly traded partnership as a C corporation if the election is so made.
(f) “Publicly traded partnership” means any partnership, an interest in which is regularly traded on an established securities market. A “publicly traded partnership” may have any number of partners.
(Ord. 9984-2015. Passed 12-15-15; Ord. 11012-2018. Passed 1-23-18.)