alaska heating assistance programs policy manual - DPAweb ...

. Using Actuals as Cost of Doing Business
If the household believes their self-employment expenses are higher
than 50% of their gross self-employment income, they may claim
actual expenses as their cost of doing business.
1. Expenses Allowed as Costs of Doing Business
Allowable costs of doing business, directly related to the
business, include but are not limited to:
• Labor, including gross wages for an employee, employee life
and health insurance premiums, and mandatory employer
contributions to employee benefits plans such as
Unemployment Insurance and Social Security.
• Payments made to a self-employed helper, such as costs for
contracted work, shares paid to a self-employed crewmember,
etc.
• Stock and inventory, including the actual amount plus tax of a
product purchased for resale.
• Raw materials.
• Purchase of durable goods.
• Interest and principal paid on loans to purchase durable goods.
• Insurance premiums, taxes, assessments, and utilities for
income producing property.
If the household’s home is used as the place of business, a
percentage of the mortgage interest and principal, insurance,
taxes, and utilities can be allowed as costs of doing business.
To be allowed these costs, the self-employed individual must
provide a description of the portion of the home used in the
business, proof of the gross amount of the expenses, and a
reasonable method for estimating the proportion of expenses
attributed to the business (such as a percentage of use,
amounts claimed under IRS rules, etc.)
The portion of the costs allowed as business expenses is not
allowed as shelter costs in the heating assistance budget.
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