For taxable years prior to 2004 "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 chapter, Federal, State and other taxes based on income; and in case of an association, without deduction of salaries paid to partners and other owners. For taxable years 2004 and later, See "Adjusted Federal Taxable Income".
Adjusted Federal Taxable Income-A "C" Corporation’s Federal Taxable Income before Net Operating Losses and Special Deductions as determined under the Internal Revenue Code, but including subsequent adjustments from required additions and deductions. Pass-through entities must compute "Adjusted Federal Taxable Income" as if the Pass-Through entity was a "C" corporation. This definition does not apply to any taxpayer required to tile a return under O.R.C. §5745.03 or to the Net Profit from a sole proprietorship. This definition is effective for tax years beginning on or after January 1, 2004.
(Ord. 2005-22. Passed 3-9-05.)