Under Ohio’s Current Agricultural Use Value (CAUV) program, “land devoted exclusively to commercial agriculture” is valued based on the agricultural use of the land rather than its “highest and best probable legal use.” A CAUV valuation often results in a significant reduction in property taxes. In order to qualify for the CAUV program, property larger than 10 acres must be devoted exclusively to commercial agriculture (such as animal husbandry, field crops, or commercial tim

In good news for Ohio filmmakers, the General Assembly recently passed legislation to double Ohio’s film making tax incentive in order to encourage big-budget films to be shot in the Buckeye State. From the Columbus Dispatch: The legislation, passed by the Ohio General Assembly and signed by Kasich last month, will go into effect at the end of September. In addition to doubling the incentive cap, the law removes the $5 million cap for each project and raises the incentive rat

Article XII Sec. 2 of the Ohio Constitution permits the enactment of general laws exempting from taxation public school houses, houses used exclusively for public worship, institutions used exclusively for charitable purposes, and public property used exclusively for any public purpose. Pursuant to this authority, the Ohio Legislature enacted Ohio Revised Code (the “ORC”) §5709, “Taxable Property – Exemptions.” Church tax exemptions are found in ORC §5709.07. The ORC defines

Article XII Sec. 2 of the Ohio Constitution permits the enactment of general laws exempting from taxation public school houses, houses used exclusively for public worship, institutions used exclusively for charitable purposes, and public property used exclusively for any public purpose. Pursuant to this authority the Ohio Legislature enacted Ohio Revised Code (the “ORC”) §5709, “Taxable Property — Exemptions.” The exemption for charitable uses is found in ORC §5709.12 and §57

Every year, Ohio counties assess a property’s real estate taxes based on the market value the county places upon the property. However, the county’s assessed value does not always accurately reflect the property’s true market value. Ohio law gives property owners the right to challenge the value the county has placed upon their property if they feel it is in excess of the true market value by filing a complaint against the property’s value with the county auditor. That compla

What does this week’s much-anticipated opening of Star Wars: The Force Awakens have to do with the law? Perhaps more than you expect.  In fact, quite a few legal scholars and attorney bloggers have explored how the epic franchise illuminates many different aspects of the law, including the following. Property Law: Who owns the rights to the blue lightsaber owned by Anakin Skywalker, collected by Obi-Wan Kenobi, given to and lost by Luke Skywalker, and apparently seen in trail

You might be surprised to learn that both federal and state tax codes offer incentives to encourage film and television production. In fact, Section 181 of the Internal Revenue Code gives most film and television productions a tax deduction of up to $15 million of production costs ($20 million for productions in economically distressed areas). The deduction can be taken during the first year of production and applies only to productions commenced before the end of 2014. Despi

You might be surprised to learn that both federal and state tax codes offer incentives to encourage film and television production. In fact, Section 181 of the Internal Revenue Code gives most film and television productions a tax deduction of up to $15 million of production costs ($20 million for productions in economically distressed areas). The deduction can be taken during the first year of production and applies only to productions commenced before the end of 2014. Despi

We recently received an inquiry from a small nonprofit organization that learned that the Internal Revenue Service had revoked its tax exemption for failure to file required notices. Among other consequences, this meant that the organization would be liable for corporate income tax, could face additional tax penalties, and would be unable to provide donors with a tax deduction for their gifts. If your organization has received similarly discouraging news, take heart. Organiza

The Internal Revenue Service has recently released a new tax form to help small charitable organizations apply for tax-exempt status. Form 1023-EZ, introduced in July 2014, provides an alternative to the longer Form 1023 and will allow the IRS to more efficiently process applications for 501(c)(3) tax-exempt status. From the IRS news release: The new Form 1023-EZ, available today on IRS.gov, is three pages long, compared with the standard 26-page Form 1023. Most small organiz

The Ohio Attorney General reports more than 42,000 registered nonprofit organizations in Ohio. How do you add your great idea to the list? The first decision you must make is what type of nonprofit organization to form. Probably the most common is the nonprofit corporation, because it enables the founder(s) to limit liability. Under Ohio law governing nonprofit corporations, the founder must file articles of incorporation with the Ohio Secretary of State. In addition to an in

Imagine this scenario. A tenant suddenly vacates her apartment and moves out of state, leaving her water bill unpaid. Who is liable for the outstanding bill? Under Ohio law, landlords can be held responsible for a tenant’s unpaid water bills. A municipality has the power to place a lien on the property and collect the payment through property taxes or bring a lawsuit against the property owner to recoup the money. Unpaid bills can mean a large financial loss for the city, so

Most Ohio small business owners are eligible for a 50 percent deduction on their first $250,000 of business income as part of tax cuts approved last year by the Ohio legislature.  As part of the tax cut, a business owner can exclude 50 percent of Ohio net business income from the adjusted gross income reported on the state personal income tax return. Owners of and investors in, Ohio businesses structured as pass-through entities (such as sole proprietorships, partnerships, S-

A recent report by the Chronicle of Philantrophy studied charitable giving in America, and the results were perhaps surprising. The study found that, as the country struggled out of a recession, wealthier Americans are giving away a smaller percentage of their income, while poorer Americans are giving more. According to Forbes, Americans who earned at least $200,000 gave nearly 5% less to charity in 2012 than in 2006. In contrast, Americans who earned less than $25,000 incre

Last month, federal proceedings began to determine whether the city of Detroit is eligible to file for bankruptcy. As part of the city’s process to review its assets, Detroit hired the renowned auction house Christie’s to appraise the priceless works of art by Picasso, Monet, Rembrandt, and others housed at the Detroit Institute of Arts. This action is controversial because it could lead to an art sale and a potential violation of ethical guidelines prohibiting a museum from

An important tax incentive for investments in economically distressed neighborhoods is set to expire at the end of 2013. The New Markets Tax Credit (NMTC) is designed to increase the flow of capital and spur investment and job creation in communities with high unemployment and other measures of economic distress. The NMTC provides private investors with a 39 percent federal tax credit for investments made in businesses or economic development projects in some of the most dist

Experts at this week’s American Institute of Certified Public Accountants National Tax Conference predicted that Congress is unlikely to pass comprehensive tax reform legislation in the near future despite ongoing positive discussions. The House and Senate tax-writing committees are on track to produce bipartisan tax reform legislation that will receive lawmakers’ approval, but it is unlikely to occur until the next Congress, said tax experts on November 4. Speaking at the AI

Late in 2012, “fiscal cliff” was the political and economic term du jour in the United States. In short, the fiscal cliff was a combination of spending cuts and tax increases that were scheduled to automatically occur on January 1, 2013 (and in fact did occur). Many believed that such a sharp decline in the budget deficit would result in another recession. Congress and the President scrambled to reach a “deal” that combined tax relief with spending reform. On January 2, 2013,

Interesting decision below: Taxpayers Engaged in Horse Breeding Activity with Profit Objective; Losses Deductible (Dennis, TCM) A married couple engaged in a horse breeding activity with the intent of making a profit and were entitled to deduct their losses from the activity for several tax years. Overall, the couple carried on the activity in a businesslike manner by having a business plan and executing it, by maintaining financial records and books for the activity and usin