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Pass-Through Businesses Score Tax Break on Ohio Entity Sales

June 24, 2022, 9:15 PM

Ohio pass-through entity owners gained a lucrative tax break Friday with Gov. Mike DeWine’s signature of a bill giving preferential treatment to income from business sales.

The law (H.B. 515) allows Ohio owners of limited liability companies, limited liability partnerships, and S corporations to claim income from sales of those businesses as pass-through income, qualifying those owners for $250,000 deductions and a 3% flat tax on amounts above that.

The law’s proponents said the legislation was necessary for parity, equalizing treatment of in-state business owner sales with that of similar sales by non-Ohio resident owners. ...