Utah Admin. Code R982-403-8 - Self-Employment Income

(1) A self-employed person is someone who earns income directly from his or her own business, trade, or profession.

(2) Self-employment income will be determined by using the previous year's tax return or as follows:

(a) All gross self-employment income is counted, including capital gains.

The proceeds from the sale of capital goods or equipment will be calculated in the same way as a capital gain for Federal income tax purposes. Even if only part of the proceeds from the sale of capital goods or equipment is taxed, the full amount of the capital gain will be counted as income for HEAT program purposes.

(b) The cost of doing business will be deducted.

(i) Allowable business costs include:

(A) labor;

(B) stock;

(C) raw materials;

(D) seed and fertilizer;

(E) interest paid toward the purchase of income producing property;

(F) insurance premiums;

(G) taxes paid on income producing property;

(H) Transportation costs will be allowed only if the person must move from place to place in the course of business.

(ii) The following items will not be allowed as business expenses:

(A) payments on the principal of the purchase price of income producing real estate and capital assets, equipment, machinery and other durable goods;

(B) net losses from previous periods;

(C) federal, state and local income taxes, money set aside for retirement purposes, and other work related personal expenses;

(D) depreciation.

Notes

Utah Admin. Code R982-403-8

Amended by Utah State Bulletin Number 2014-20, effective 10/1/2014