Income from Self-Employment or Operation of a Business - 2017 Minnesota Statutes Section 518A.30

Sep 19, 2026

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This document provides the legal definition of income from self-employment and business operation under the 2017 Minnesota Statutes, specifically for the purpose of calculating child support obligations. It details the method for calculating gross income by subtracting ordinary and necessary business expenses from gross receipts, while explicitly excluding certain deductions allowed by the Internal Revenue Service, such as accelerated depreciation and other court-determined excessive expenses. The statute places the burden of proof on the individual seeking to deduct such business expenses to demonstrate they are ordinary and necessary. The document highlights the regulatory framework used by legal professionals to scrutinize self-employment income, ensuring that tax-deductible business expenses do not unfairly reduce the net income available for child support calculations. By establishing these specific criteria, Minnesota law balances federal tax code allowances with the state's mandate to accurately assess financial capacity in domestic relations cases.

LanguageEnglish

CategoryGeneral

FormatPDF

Pages26

Reading Time9 min

AccessFree to download

Income Calculation for Child Support

Definition of Self-Employment Income

Excluded Deductions and Burden of Proof

FAQs

How is income from self-employment defined under Minnesota Statute 518A.30 for child support purposes?

Income is defined as gross receipts minus the costs of goods sold and minus ordinary and necessary expenses required for the self-employment or business operation.

Who bears the burden of proving that a business expense is ordinary and necessary?

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

Are all IRS-allowed deductions automatically accepted for calculating child support in Minnesota?

No. Expenses such as accelerated depreciation, investment tax credits, or other business expenses determined by the court to be inappropriate or excessive for child support calculations are specifically excluded.

Sep 19, 2026

Upload by Patrick