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West Virginia Income Maintenance Manual Chapter 4

West Virginia Income Maintenance Manual Page 88 Chapter 4 Income

Business expenses may be computed on a monthly basis or prorated over a 12-month period, at the client's option. ➢ New Business AGs with a new business that has been in existence less than a year have their income and incurred business expenses averaged over the amount of time the business has been in operation. From this, the monthly amount is projected for the coming year. However, if the averaged amount of past income and/or expenses does not accurately reflect the anticipated monthly circumstances because of a substantial increase or decrease in business, the income and/or expenses is calculated based on anticipated earnings. 4.4.4.D.2 Determining Gross Profit Gross profit from self-employment is the income remaining after deducting any identifiable costs of doing business from the gross income. ➢ Deductions Examples of allowable deductions include, but are not limited to: • Employee labor costs, including wages paid to an AG member and any salary the client pays himself. When paid to an AG member, the income must be considered according to the provisions in Section 4.3. • Stock and supplies • Raw material • Seed • Fertilizers • Repair and maintenance of machinery and/or property • Cost of rental space used for conducting the business • Payments on the principal and interest of the purchase price of income-producing real estate and capital assets, equipment, machinery, and other durable goods • Insurance premiums and taxes paid on the business and income-producing property • The utilities, principal, interest, and taxes for the client's residence which is used in part to produce income. This is applicable only if the expenses on the portion of the home used in the self-employment enterprise can be identified separately. See Shelter/Utility