(a) Municipal taxable income for a resident of the City of Brook Park is calculated as follows: “Income” reduced by “exempt income” to the extent such exempt income is otherwise included in income, reduced by allowable employee business expense deduction as found in Section 1803.22(b), further reduced by any “Pre-2017 net operating loss carryforward” equals “municipal taxable income.”
(1) “Income” is defined in Section 1803.16.
A. “Qualifying wages” is defined in Section 1803.35.
B. “Net profit” is included in “income”, and is defined in Section 1803.25. The net operating loss carryforward shall be calculated and deducted in the same manner as provided in Section 1803.02(h). Treatment of net profits received by an individual taxpayer from rental real estate is provided in Section 1806.02(e).
C. Section 1803.16 provides the following: offsetting and net operating loss carryforward treatment in Section 1803.16(a)(2)A.; resident’s distributive share of net profit from pass through entity treatment in Section 1803.16(a)(2)B.; treatment of S Corporation distributive share of net profit in the hands of the shareholder in Section 1803.16(a)(3); restriction of amount of loss permitted to be carried forward for use by taxpayer in a subsequent taxable year in Section 1803.16(a)(4).
D. “Pass through entity” is defined in Section 1803.29.
(2) “Exempt income” is defined in Section 1803.13.
(3) Allowable employee business expense deduction is described in Section 1803.22(b), and is subject to the limitations provided in that section.
(4) “Pre-2017 net operating loss carryforward” is defined in Section 1803.34.
(b) Municipal taxable income for a nonresident of the City of Brook Park is calculated as follows: “Income” reduced by “exempt income” to the extent such exempt income is otherwise included in income, as applicable, apportioned or sitused to the City of Brook Park as provided in Section 1806.02, reduced by allowable employee business expense deduction as found in Section 1803.22(b), further reduced by any “pre-2017 net operating loss carryforward” equals “municipal taxable income”.
(1) “Income” is defined in Section 1803.16.
A. “Qualifying wages” is defined in Section 1803.35.
B. “Net profit” is included in “income”, and is defined in Section 1803.25. This chapter also provides that the net operating loss carryforward shall be calculated and deducted in the same manner as provided in Section 1803.01(h). “Net profit” for a nonresident individual includes any net profit of the nonresident, but excludes the distributive share of net profit or loss of only pass through entity owned directly or indirectly by the nonresident.
C. “Pass through entity” is defined in Section 1803.29.
(2) “Exempt income” is defined in Section 1803.13.
(3) “Apportioned or sitused to the City of Brook Park as provided in Section 1806.02" includes the apportionment of net profit income attributable to work done or services performed in the City of Brook Park. Treatment of net profits received by an individual taxpayer from rental real estate is provided in Section 1806.02(e).
(4) “Allowable employee business expense deduction” as described in Section 1803.22(b), is subject to the limitations provided in that section. For a nonresident of the City of Brook Park, the deduction is limited to the extent the expenses are related to the performance of personal services by the nonresident in the City of Brook Park.
(5) “Pre-2017 net operating loss carryforward” is defined in Section 1803.34.
(Ord. 9984-2015. Passed 12-15-15; Ord. 11375-2023. Passed 12-12-23.)