alaska heating assistance programs policy manual - DPAweb ...

f. Gross Self-Employment Income
Gross self-employment income means the total amount of money the
trade or business produces. Gross self-employment income is
computed by totaling the gross business receipts (income) for the
business enterprise. Allowable costs of doing business are not
deducted in determining gross self-employment income.
g. Adjusted Gross Self-Employment Income
Adjusted gross self-employment income means the gross selfemployment
earnings less allowable costs of doing business.
Allowable costs of doing business can be determined by using the selfemployment
standard deduction or actual costs of doing business. To
determine adjusted gross self-employment income, subtract the total
amount of allowable costs of doing business from the gross selfemployment
earnings. The amount of self-employment earnings
countable to a self-employed individual is the adjusted gross selfemployment
income.
h. Self-Employment Costs of Doing Business
Self-employment costs of doing business can be determined by
allowing the self-employment standard deduction from gross income or
actual expenses if the household believes their costs were more than
50% of their gross earnings. Self-employment costs of doing business
are those declared non-personal expenses that are directly related to
producing the self-employment income, and which are not specifically
prohibited. If an expense is determined to be an allowable cost of doing
business, the expense is deducted in computing adjusted gross income
whether it is paid or not.
i. Durable Goods
Durable goods are items of value purchased for use in the selfemployment
enterprise that are normally used for more than one year
or season and can usually be sold once the self-employment business
ends. Durable goods include items such as:
• Office equipment
• Transmission gears
• Vehicles
• Photo lab
equipment
• File cabinets
• Electronic equipment
• Floats and buoys
• Spare engines
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