(A) Municipal Taxable Income for a resident of the Municipality is calculated as follows:
(1) “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 § 40.03(20)(b) of this chapter, further reduced by any “Pre-2017 net operating loss carryforward” equals “Municipal taxable income”.
2, NET PROFIT is included in “income”, and is defined in § 40.03(23) of this chapter. This section also provides that the net operating loss carry- forward shall be calculated and deducted in the same manner as provided in § 40.03(1)(h). Treatment of net profits received by an individual taxpayer from rental real estate is provided in § 40.062(E).
3. Section 40.03(14) provides the following: offsetting and net operating loss carry-forward treatment in division (14)(a)2.a.; resident's distributive share of net profit from pass through entity treatment in division (14)(a)2.b.; treatment of S Corporation distributive share of net profit in the hands of the shareholder in division (14)(a)3.; restriction of amount of loss permitted to be carried forward for use by taxpayer in a subsequent taxable year in division (14)(a)4.
(c) Allowable employee business expense deduction is described in Section 40.03(20)(b) of this chapter, and is subject to the limitations provided in that Section.
(Ord. 15-27, passed 12-28-2015)