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West Virginia Income Maintenance Manual Chapter 4

West Virginia Income Maintenance Manual Page 226 Chapter 4 Income

• Fertilizers. • Insurance premiums and taxes paid on the business and business property. • Interest and taxes, but not the principal, paid on installment payments to purchase capital assets, such as real estate, machinery, equipment, etc. • Interest and taxes on the client's residence that is used in part to produce income. This is applicable only if the costs on the portion of the home used in the self-employment enterprise can be identified separately. • Legal costs. • Office expenses (stamps, stationery, etc.). • Raw material. • Repair and maintenance of machinery and/or property. • Seed. • Stock and supplies. • Utilities. Do not deduct the following: • Amounts claimed as a net loss. • Depreciation. • Federal, state, or local income taxes. • Money paid to purchase capital assets, such as real estate, machinery, equipment, etc. Interest is deducted, if paid in installments. 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. • Money set aside for retirement. • Principal of real estate mortgages on income-producing property. • Travel from home to a fixed place of business and return. ➢ Rental Income Deductions In addition to the deductions above, the following expenses are deducted from rental income: • Interest, but not the principal, on necessary purchases made in installments, such as the purchase of a new furnace