§ 104.061. Determining municipal taxable income for individuals.
(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 subsection (19)(B) of Section 104.02 of this chapter, further reduced by any "Pre-2017 Net Operating Loss Carryforward" equals "Municipal Taxable Income".
(a)
"Income" is defined in Section 104.02 (13) of this chapter.
(i)
"Qualifying Wages" is defined in Section 104.02(33).
(ii)
"Net profit" is included in "income", and is defined in Section 104.02 (22) of this chapter. This section also provides that the net operating loss carryforward shall be calculated and deducted in the same manner as provided in subsection (1)(H) of Section 104.02. Treatment of net profits received by an individual taxpayer from rental real estate is provided in Section 104.042(E).
(iii)
Section 104.02(13) provides the following: offsetting and net operating loss carryforward treatment in subsection (13)(A)(ii)(a); resident's distributive share of net profit from pass through entity treatment in subsection (13)(A)(ii)(b); treatment of S Corporation distributive share of net profit in the hands of the shareholder in subsection (13)(A)(iii); restriction of amount of loss permitted to be carried forward for use by taxpayer in a subsequent taxable year in subsection (13)(A)(iv).
(iv)
"Pass Through Entity" is defined in Section 104.02(26).
(b)
"Exempt Income" is defined in Section 104.064 of this chapter.
(c)
Allowable employee business expense deduction is described in subsection (19)(B) of Section 104.02 of this chapter, and is subject to the limitations provided in that section.
(d)
"Pre-2017 Net Operating Loss Carryforward" is defined in Section 104.02(31) of this chapter.
(B)
"Municipal Taxable Income" for a nonresident of the Municipality is calculated as follows:
(1)
"Income" reduced by "Exempt Income" to the extent such exempt income is otherwise included in income, as applicable, apportioned or sitused to the Municipality as provided in Section 104.042 of this chapter, reduced by allowable employee business expense deduction as found in subsection (19)(B) of Section 104.02 of this chapter, further reduced by any "Pre-2017 Net Operating Loss Carryforward" equals "Municipal Taxable Income".
(a)
"Income" is defined in Section 104.02(13) of this chapter.
(i)
"Qualifying Wages" is defined in Section 104.02(33).
(ii)
"Net profit" is included in "income", and is defined in Section 104.02(22) of this chapter. This section also provides that the net operating loss carryforward shall be calculated and deducted in the same manner as provided in subsection (1)(H) of Section 104.02. "Net profit" for a nonresident individual includes any net profit of the nonresident, but excludes the distributive share of net profit or loss of only pass through entity owned directly or indirectly by the nonresident.
(iii)
"Pass Through Entity" is defined in Section 104.02(26).
(b)
"Exempt Income" is defined in Section 104.064 of this chapter.
(c)
"Apportioned or sitused to the Municipality as provided in Section 104.042 of this chapter" includes the apportionment of net profit income attributable to work done or services performed in the Municipality. Treatment of net profits received by an individual taxpayer from rental real estate is provided in Section 104.042(E).
(d)
"Allowable employee business expense deduction" as described in subsection (19)(B) of Section 104.02 of this chapter, is subject to the limitations provided in that section. For a nonresident of the Municipality, the deduction is limited to the extent the expenses are related to the performance of personal services by the nonresident in the Municipality.
(e)
"Pre-2017 Net Operating Loss Carryforward" is defined in Section 104.02(31) of this chapter.
(Ord. 360-2015; Ord. 83-2018)