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

2. (2) Except as otherwise provided in this subsection, self-employment income will be determined by using the previous year's tax return.

   1. (a) 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.

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

      1. (i) Allowable business costs include:

         1. (A) labor;
         2. (B) stock;
         3. (C) raw materials;
         4. (D) seed and fertilizer;
         5. (E) interest paid toward the purchase of income producing property;
         6. (F) insurance premiums;
         7. (G) taxes paid on income producing property; and
         8. (H) transportation costs if the person must move from place to place in the course of business.

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

         1. (A) payments on the principal of the purchase price of income producing real estate and capital assets, equipment, machinery and other durable goods;
         2. (B) net losses from previous periods;
         3. (C) federal, state, and local income taxes, money set aside for retirement purposes, and other work related personal expenses; and
         4. (D) depreciation.

KEY: energy assistance, self-employment income, income eligibility, payment determination

Date of Last Change: June 14, 2022

Notice of Continuation: June 17, 2022

Authorizing, and Implemented or Interpreted Law: 35A-8-1403