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Low Income Home Energy Assistance Program Division 10 Service 415 Program 415 Chapters 05 - 65 North Dakota Department of Health and Human Services

Anticipating Self-Employment Income in Special Circumstances 415-25-05-27-10 (Revised 10/1/14 ML# 3407) View Archives

When a household has not filed a self-employment income tax return or there has been a significant increase or decrease in the operation of the business, income tax forms, monthly ledgers or bookkeeping records may be used as verification. The income is determined as follows: 1. Business Not In Operation a Complete Calendar Year or Tax Forms Not Filed a. The applicant will need to provide monthly income and expense ledgers to anticipate self-employment income and unearned income as a result of self-employment. The EAP Anticipated Self-Employment Worksheet will assist with determining the monthly net farming and business income. 2. Partial Liquidation of Business a. If a business sells some land, equipment, or other capital items to obtain money for current operating expenses and/or pay off a loan, and does not expect a substantial reduction in self- employment income as a result of the sale, continue to look at the most recent income tax forms. b. If the business liquidates a large enough portion of the business to result in an anticipated substantial reduction in the self- employment income, the income tax forms must be appropriately adjusted to accurately anticipate the current year's income using the most recent income tax forms. Income and expenses (other than depreciation and depletion) for the portion of the business that is not being liquidated is used to determine net self-employment income.

Capital gain/losses on sale of property are counted as income.