Terms Used In Ohio Code > Chapter 5747 - Income Tax

• Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
• Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
• Another: when used to designate the owner of property which is the subject of an offense, includes not only natural persons but also every other owner of property. See Ohio Code 1.02
• Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
• Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Available: means information is such that a person is able to learn of the information by the due date plus extensions, if any, for filing the return for the taxable year in which the trust recognizes the gain or loss. See Ohio Code 5747.01
• Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
• Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. ^{Source: OCC}
• Bond: includes an undertaking. See Ohio Code 1.02
• Business income: includes income, including gain or loss, from a partial or complete liquidation of a business, including, but not limited to, gain or loss from the sale or other disposition of goodwill or the sale of an equity or ownership interest in a business. See Ohio Code 5747.01
• Child: includes child by adoption. See Ohio Code 1.59
• Compensation: means any form of remuneration paid to an employee for personal services. See Ohio Code 5747.01
• Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
• Contingent beneficiary: Receiver of property or benefits if the first named beneficiary fails to receive any or all of the property or benefits in question before his (her) death.
• Contract: A legal written agreement that becomes binding when signed.
• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• Decedent: A deceased person.
• Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
• Dependent: A person dependent for support upon another.
• dependent: includes a person who otherwise would be a "qualifying relative" and thus a "dependent" under section 152 of the Internal Revenue Code but for the fact that the person fails to meet the income and support limitations under section 152(d)(1)(B) and (C) of the Internal Revenue Code. See Ohio Code 5747.01
• Dependents: means one of the following:

  (1) For taxable years beginning on or after January 1, 2018, and before January 1, 2026, dependents as defined in the Internal Revenue Code;

  (2) For all other taxable years, dependents as defined in the Internal Revenue Code and as claimed in the taxpayer's federal income tax return for the taxable year or which the taxpayer would have been permitted to claim had the taxpayer filed a federal income tax return. See Ohio Code 5747.01

• Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
• Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) ^{Source: OCC}
• Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
• Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. ^{Source: U.S. Courts}
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Executor: A male person named in a will to carry out the decedent
• Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
• Fiduciary: A trustee, executor, or administrator.
• Fiduciary: means a guardian, trustee, executor, administrator, receiver, conservator, or any other person acting in any fiduciary capacity for any individual, trust, or estate. See Ohio Code 5747.01
• Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
• Fiscal year: means an accounting period of twelve months ending on the last day of any month other than December. See Ohio Code 5747.01
• Grantor: The person who establishes a trust and places property into it.
• Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
• in writing: includes any representation of words, letters, symbols, or figures; this provision does not affect any law relating to signatures. See Ohio Code 1.59
• Income taxes withheld: means the total amount withheld and remitted under sections 5747. See Ohio Code 5747.01
• Increase in income taxes withheld: means the amount by which the amount of income taxes withheld by an employer during the employer's current taxable year exceeds the amount of income taxes withheld by that employer during the employer's immediately preceding taxable year. See Ohio Code 5747.01
• Individual: means any natural person. See Ohio Code 5747.01
• Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
• Intangible property: Property that has no intrinsic value, but is merely the evidence of value such as stock certificates, bonds, and promissory notes.
• Inter vivos: Transfer of property from one living person to another living person.
• Internal Revenue Code: means the "Internal Revenue Code of 1986" 100 Stat. See Ohio Code 5747.01
• Internet: means the international computer network of both federal and nonfederal interoperable packet switched data networks, including the graphical subnetwork known as the world wide web. See Ohio Code 1.59
• Irrevocable trust: A trust arrangement that cannot be revoked, rescinded, or repealed by the grantor.
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• Lien: A claim against real or personal property in satisfaction of a debt.
• Limited liability company: means any limited liability company formed under former Chapter 1705 of the Revised Code as that chapter existed prior to February 11, 2022, Chapter 1706 of the Revised Code, or the laws of any other state. See Ohio Code 5747.01
• medical care: has the meaning given in section 213 of the Internal Revenue Code, subject to the special rules, limitations, and exclusions set forth therein, and "qualified long-term care" has the same meaning given in section 7702B(c) of the Internal Revenue Code. See Ohio Code 5747.01
• Modified adjusted gross income: means Ohio adjusted gross income plus any amount deducted under divisions (A)(28) and (34) of this section for the taxable year. See Ohio Code 5747.01
• Modified business income: means the business income included in a trust's Ohio taxable income after such taxable income is first reduced by the qualifying trust amount, if any. See Ohio Code 5747.01
• Modified nonbusiness income: means a trust's Ohio taxable income other than modified business income, other than the qualifying trust amount, and other than qualifying investment income, as defined in section 5747. See Ohio Code 5747.01
• Month: means a calendar month. See Ohio Code 5747.01
• Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
• Mortgagee: The person to whom property is mortgaged and who has loaned the money.
• Nonbusiness income: means all income other than business income and may include, but is not limited to, compensation, rents and royalties from real or tangible personal property, capital gains, interest, dividends and distributions, patent or copyright royalties, or lottery winnings, prizes, and awards. See Ohio Code 5747.01
• Nonresident: means an individual or estate that is not a resident. See Ohio Code 5747.01
• Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
• Ohio adjusted gross income: means federal adjusted gross income, as defined and used in the Internal Revenue Code, adjusted as provided in this section:

  (1) Add interest or dividends on obligations or securities of any state or of any political subdivision or authority of any state, other than this state and its subdivisions and authorities. See Ohio Code 5747.01

• Overpayment: means any amount already paid that exceeds the figure determined to be the correct amount of the tax. See Ohio Code 5747.01
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• Pass-through entity investor: means any person who, during any portion of a taxable year of a pass-through entity, is a partner, member, shareholder, or equity investor in that pass-through entity. See Ohio Code 5747.01
• Person: includes an individual, corporation, business trust, estate, trust, partnership, and association. See Ohio Code 1.59
• Personal property: All property that is not real property.
• Population: means that shown by the most recent regular federal census. See Ohio Code 1.59
• pre-income tax trust: is a trust that satisfies all of the following requirements:

  (a) The document or instrument creating the trust was executed by the grantor before January 1, 1972;

  (b) The trust became irrevocable upon the creation of the trust; and

  (c) The grantor was domiciled in this state at the time the trust was created. See Ohio Code 5747.01

• Principal county of employment: means , in the case of a nonresident, the county within the state in which a taxpayer performs services for an employer or, if those services are performed in more than one county, the county in which the major portion of the services are performed. See Ohio Code 5747.01
• Property: means real and personal property. See Ohio Code 1.59
• Qualified organ donation expenses: means travel expenses, lodging expenses, and wages and salary forgone by a taxpayer in connection with the taxpayer's donation, while living, of one or more of the taxpayer's human organs to another human being. See Ohio Code 5747.01
• qualified pre-income tax trust: is a ny pre-income tax trust that makes a qualifying pre-income tax trust election as described in division (EE)(3) of this section. See Ohio Code 5747.01
• qualifying beneficiary: is a ny current, future, or contingent beneficiary, but with respect to any trust "qualifying beneficiary" excludes a person or a governmental entity or instrumentality to any of which a contribution would qualify for the charitable deduction under section 170 of the Internal Revenue Code. See Ohio Code 5747.01
• Qualifying corporation: means any person classified for federal income tax purposes as an association taxable as a corporation, except either of the following:

  (i) A corporation that has made an election under subchapter S, chapter one, subtitle A, of the Internal Revenue Code for its taxable year ending within, or on the last day of, the investor's taxable year;

  (ii) A subsidiary that is wholly owned by any corporation that has made an election under subchapter S, chapter one, subtitle A of the Internal Revenue Code for its taxable year ending within, or on the last day of, the investor's taxable year. See Ohio Code 5747.01

• qualifying investee: includes all persons in the qualifying controlled group on such last day. See Ohio Code 5747.01
• Qualifying Ohio educator: means an individual who, for a taxable year, qualifies as an eligible educator, as that term is defined in section 62 of the Internal Revenue Code, and who holds a certificate, license, or permit described in Chapter 3319. See Ohio Code 5747.01
• Qualifying person: means any person other than a qualifying corporation. See Ohio Code 5747.01
• qualifying pre-income tax trust election: is a n election by a pre-income tax trust to subject to the tax imposed by section 5751. See Ohio Code 5747.01
• qualifying transfer: is a transfer of assets, net of any related liabilities, directly or indirectly to a trust, if the transfer is described in any of the following:

  (i) The transfer is made to a trust, created by the decedent before the decedent's death and while the decedent was domiciled in this state for the purposes of this chapter, and, prior to the death of the decedent, the trust became irrevocable while the decedent was domiciled in this state for the purposes of this chapter. See Ohio Code 5747.01

• Quarter: means the first three months, the second three months, the third three months, or the last three months of the taxpayer's taxable year. See Ohio Code 5747.01
• Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
• Registered mail: includes certified mail and "certified mail" includes registered mail. See Ohio Code 1.02
• Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
• Reporter: Makes a record of court proceedings and prepares a transcript, and also publishes the court's opinions or decisions (in the courts of appeals).
• Resident: means any of the following:

  (1) An individual who is domiciled in this state, subject to section 5747. See Ohio Code 5747.01

• Return: means the notifications and reports required to be filed pursuant to this chapter for the purpose of reporting the tax due and includes declarations of estimated tax when so required. See Ohio Code 5747.01
• Rule: includes regulation. See Ohio Code 1.59
• sale of an equity or ownership interest in a business: means sales to which either or both of the following apply:

  (1) The sale is treated for federal income tax purposes as the sale of assets. See Ohio Code 5747.01

• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
• state: means the state of Ohio. See Ohio Code 1.59
• Subdivision: means any county, municipal corporation, park district, or township. See Ohio Code 5747.01
• subsidized health plan: means a health plan for which the employer pays any portion of the plan's cost. See Ohio Code 5747.01
• Taxable business income: means the amount by which an individual's business income that is included in federal adjusted gross income exceeds the amount of business income the individual is authorized to deduct under division (A)(28) of this section for the taxable year. See Ohio Code 5747.01
• Taxable year: means the calendar year or the taxpayer's fiscal year ending during the calendar year, or fractional part thereof, upon which the adjusted gross income is calculated pursuant to this chapter. See Ohio Code 5747.01
• Taxpayer: means any person subject to the tax imposed by section 5747. See Ohio Code 5747.01
• Testator: A male person who leaves a will at death.
• Testify: Answer questions in court.
• Testimony: Evidence presented orally by witnesses during trials or before grand juries.
• Trustee: A person or institution holding and administering property in trust.
• United States: includes all the states. See Ohio Code 1.59
• upper level pass-through entity: means a pass-through entity directly or indirectly owning any equity of another pass-through entity, and "lower level pass-through entity" means that other pass-through entity. See Ohio Code 5747.01
• Whoever: includes all persons, natural and artificial; partners; principals, agents, and employees; and all officials, public or private. See Ohio Code 1.02