Page 601

West Virginia Income Maintenance Manual Chapter 4

West Virginia Income Maintenance Manual Page 129 Chapter 4 Income

• Stock and supplies. • Raw material. • Seed. • Fertilizers. • Repair and maintenance of machinery and/or property. • Cost of rental space used for conducting the business. • Insurance premiums and taxes paid on the business and income-producing property. • Interest and taxes, but not the principal, paid on installment payments to purchase capitol assets, such as real estate, machinery, equipment, etc. • The utilities, principal, interest, and taxes on the client's residence that 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. • Advertising costs. • Utilities. • Office expenses (stamps, stationery, etc.). • Legal costs. Do not deduct the following: • Money paid to purchase capital assets, such as real estate, machinery, equipment, etc. Interest is deducted, if paid in installments. Deductions Example: The cost of purchasing a new furnace is a capital expenditure and only the interest on installment payments is deducted. A repair of a furnace is a routine repair and is deducted in its entirety. • Federal, state, or local income taxes. • Money set aside for retirement. • Travel from home to a fixed place of business and return. • Depreciation. • Principal of real estate mortgages on income-producing property. • Amounts claimed as a net loss.

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Page 601

Official source

West Virginia Income Maintenance Manual Chapter 4

West Virginia Income Maintenance Manual Page 129 Chapter 4 Income

• Stock and supplies. • Raw material. • Seed. • Fertilizers. • Repair and maintenance of machinery and/or property. • Cost of rental space used for conducting the business. • Insurance premiums and taxes paid on the business and income-producing property. • Interest and taxes, but not the principal, paid on installment payments to purchase capitol assets, such as real estate, machinery, equipment, etc. • The utilities, principal, interest, and taxes on the client's residence that 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. • Advertising costs. • Utilities. • Office expenses (stamps, stationery, etc.). • Legal costs. Do not deduct the following: • Money paid to purchase capital assets, such as real estate, machinery, equipment, etc. Interest is deducted, if paid in installments. Deductions Example: The cost of purchasing a new furnace is a capital expenditure and only the interest on installment payments is deducted. A repair of a furnace is a routine repair and is deducted in its entirety. • Federal, state, or local income taxes. • Money set aside for retirement. • Travel from home to a fixed place of business and return. • Depreciation. • Principal of real estate mortgages on income-producing property. • Amounts claimed as a net loss.