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Income from Self-Employment or
Operation of a Business

Quick Facts

Certain expenses and deductions are excluded from the expenses that would otherwise reduce income.
Burden of proof is on person seeking the deduction.

For purposes of determining child support income, income from self-employment or operation of a business, including joint ownership of a partnership or closely held corporation, is defined as gross receipts minus costs of goods sold minus ordinary and necessary expenses required for self-employment or business operation.

To determine gross income to calculate child support, the follwoing are specifically excluded from ordinary and necessary expenses:

accelerated depreciation expenses,
investment tax credits,
any inappropriate or excessive business expenses.

The person seeking to deduct an expense, including depreciation, has the burden of proving, if challenged, that the expense is ordinary and necessary.

Income from Self-Employment or Operation of a Business

Income from Self-Employment or
Operation of a Business