Ohio § 5733.401

§ 5733.401.

(A) As used in this section: (1) “ Investment pass-through entity ” means a pass-through entity having for its qualifying taxable year at least ninety

per cent of its gross income from transaction fees in connection with the acquisition,

ownership, or disposition of intangible property, loan fees, financing fees, consent

fees, waiver fees, application fees, net management fees, dividend income, interest

income, net capital gains from the sale or exchange of intangible property, or distributive

shares of income from pass-through entities;  and having for its qualifying taxable

year at least ninety per cent of the net book value of its assets represented by intangible

assets.  Such percentages shall be the quarterly average of those percentages as calculated

during the pass-through entity's taxable year. (2) “ Net management fees ” means management fees that a pass-through entity earns or receives from all sources,

reduced by management fees that the pass-through entity incurs or pays to any person. (B) For the purposes of divisions (A) and (C) of this section only, an investment in

a pass-through entity shall be deemed to be an investment in an intangible asset,

and sections 5733.057 and 5747.231 of the Revised Code do not apply for the purposes of making the determinations required by division (A)

of this section or claiming the exclusion provided by division (C) of this section. (C)(1) Except as otherwise provided in division (C)(2) of this section, for the purposes

of division (A) of section 5733.40 of the Revised Code , an investment pass-through entity shall exclude from the calculation of the adjusted

qualifying amount the portion of the investment pass-though entity's net income attributable

to transaction fees in connection with the acquisition, ownership, or disposition

of intangible property;  loan fees;  financing fees;  consent fees;  waiver fees;

 application fees;  net management fees;  dividend income;  interest income;  net

capital gains from the sale, exchange, or other disposition of intangible property;

 and all types and classifications of income attributable to distributive shares of

income from other pass-through entities.  Nothing in this division shall be construed to provide for an exclusion of any item

from adjusted qualifying amount more than once. (2) Notwithstanding division (C)(1) of this section, the portion of the investment pass-through

entity's net income attributable to net management fees shall not be excluded from

the calculation of the adjusted qualifying amount if such net management fees exceed

five per cent of the entity's net income calculated in accordance with generally accepted

accounting principles.