Virtually all Ohio businesses are now eligible for a 100% tax deduction on the first $250,000 of business income.

This deduction is the centerpiece of a major tax reform package initiated by Ohio Governor John Kasich and approved by the Ohio General Assembly that produced the largest overall tax reduction in the country.

For taxable year 2016 and forward, the business income deduction will enable a business owner to deduct 100% of business income from the adjusted gross income they report on their Ohio personal income tax return.

 The deduction will be limited to $250,000 for individuals with a filing status of married filing jointly or single, and $125,000 for individuals with a filing status of married filing separately.

Owners of and investors in businesses structured as sole proprietorships and pass-through entities (PTEs) qualify for this tax cut. PTEs include: partnerships, Subchapter S corporations (S-corps) and Limited Liability Companies (LLCs).

Consult with your accountant for details.