Help with Ohio return

[WhiteOleander]

I have client who is filing Non-resident for Ohio. T/P is a Texas resident.

T/P had three installment notes on the sale of real property in Ohio. All three notes were paid off in 2006. This has created about a $250,000 capital gain on sch D on the federal. Also, the interest has to be reported to Ohio.

On the Ohio return it starts with the federal AGI and then adjustments are made for the income not taxable to Ohio.

The problem is, it does not seem to give a better tax rate for capital gains like is figured on the federal. Client owes about $33,000 on the federal and $14,000 on Ohio.

That seems very high for Ohio. Almost half of what is owed on the federal.

Anyone have any pointers? I don't see any way to give the better rate in Ohio. Maybe they don't recognize that?

Hope this makes sense.

:>)

[JCH]

I struggled with an Ohio tax issue a few weeks ago. It's not my resident state, and I find this state in particular to have really difficult tax law and forms to understand. I finally used my NATP membership to get in touch with a state volunteer, who gave me a name and direct number of someone at the OH DOR. I would call the OH DOR directly and ask for assistance. Hopefully there's an Ohio preparer on this board who can help.

[WhiteOleander]

Thanks I'm a member of NATP. I didn't think to check there.

May also try DOR at Ohio.