Self-Employment Expenses SR 01-17, 06/01 (FSM-A)

Subtract the actual cost of doing business from self-employment income to arrive at the countable self-employment income. Determine countable self-employment income before combining self-employment income with other income. If the cost of doing business exceeds the self-employment income, the countable self-employment income is zero.

Examples of self-employment expenses include, but are not limited to:

. cost of materials needed to perform the job such as lumber, demonstration products;

. tools and equipment;

. work-related clothing;

. business vehicle expenses including cost of maintaining the vehicle, mileage, tokens or tolls, gasoline, insurance;

. employee taxes;

. state and municipal business taxes;

. payments on the principal and interest of the purchase price of income-producing real estate and capital assets, equipment, machinery, and other durable goods;

. advertising expenses;

. postage;

. cost of maintaining a job site, including a room in one's home;

. telephone expenses;

. electricity for the job site;

. bookkeeping and payroll expenses;

. employees;

. insurances, including disability, workers compensation, job site insurance, bonding;

. lodging away from the home while on a job;

. meals; and

. rentals related to being able to complete a job, whether it is equipment or other.

Exception: For farmers, apply the excess cost of doing business as a deduction from other case income.