HB 19 Aligns Ohio and Federal Tax Codes– April 03, 2015 by Hannah Prengler

Bill may impact your 2014 Ohio tax return

On April 1st, Governor Kasich signed House Bill 19 (HB 19) to conform Ohio’s tax code to the Internal Revenue Code (IRC). HB 19 specifically amends section 5701.11 of the Ohio Revised Code to incorporate IRC changes made since March 22, 2013. Importantly, HB 19 also contains an emergency clause that allows taxpayers to adjust their 2014 tax returns to decrease tax liabilities that resulted from Ohio’s nonconformity.

The following federal provisions are now included in Ohio tax law:

  • $250 above-the-line deduction for classroom expenses by school teachers
  • Qualified tuition expenses deductions
  • Exclusion of discharge of principal residence indebtedness for individuals
  • Exclusion for employer-provided mass transit and parking benefits
  • Exclusion of 100% of gain on certain small business stock
  • Basis adjustment to stock of S corporations making charitable contributions of property
  • IRA distributions for charitable purposes exclusion
  • Depreciation adjustments for leasehold improvement property, restaurant property, retail improvement property, and race horses and motor sports entertainment complexes
  • Depreciation allowance for second generation biofuel plant property
  • Deduction for energy efficient commercial buildings
  • Election to expense advanced mine safety equipment
  • Special expensing rules for certain film and television productions
  • Income adjustments for businesses in a designated empowerment zone

Due to the emergency clause, taxpayers may take advantage of some of these provisions on their Ohio income tax returns for 2014, whether they have already been filed or not. We will be reviewing clients’ tax returns for any new opportunities to decrease their tax liabilities. You can also contact Hannah Prengler at hprengler@cohencpa.com or a member of your service team to discuss your situation further.

This communication is published by Cohen & Company for our clients and professional associates. Cohen & Company is not rendering legal, accounting or other professional advice. Any action taken based on information in this publication should be taken only after a detailed review of the specific facts and circumstances.