(a) For taxable years beginning after January 1, 2004, net profit from a business or profession shall use as a base the taxpayer's adjusted federal taxable income.
(1) In the case of a taxpayer who has a net profit from a business or profession that is operated as a sole proprietorship, the Village shall tax and use as the base for determining the amount of the net profit that shall be considered as having a taxable situs in the Village, the net profit required to be reported by the taxpayer on federal income tax schedule c or f from such sole proprietorship for the taxable year.
(2) In the case of a taxpayer who has a net profit from rental activity required to be reported on federal income tax schedule e, the Village shall tax and use as the base for determining the net profit that shall be considered as having a taxable situs in the Village, the net profit from rental activities required to be reported by the taxpayer on schedule e for the taxable year.
(b) If an individual's taxable income includes income against which the taxpayer has taken a deduction for federal income tax purposes as reportable on the taxpayer's form 2106, and against which a like deduction has not been allowed by the Village, the Village shall deduct from the taxpayer's taxable income an amount equal to the deduction shown on such form allowable against such income, to the extent not otherwise so allowed as a deduction by the Village.
(Ord. 05-114. Passed 5-5-05.)