PM 08-02-02-a.

  1. (FCRC) Give a self-employed client a supply of Self-Employment Record (Form 2790).
  2. (Client) Uses Form 2790 to keep a log of self-employment income and expenses.

NOTE: Use of Form 2790 is not required.

Self-Employment Expenses

Example 1: A client uses her home phone to run a business. The cost of the long distance phone calls needed for the business is an allowable expense. Normal phone charges are not allowable.

Example 2: A client has a separate phone for a business in the home. The entire cost (normal charges and long distance) of the separate phone is an allowable expense. The cost of the client's personal phone is not allowable.

Example 3: A client runs a business out of the basement of her home. Before the business was established, the basement was not heated. Now the basement is heated to allow its use as an office. The increased cost of the client's heat bill due to heating the basement is an allowable business expense.

Example 4: A client runs a business out of the home with no separate office. Work is done in the normal living area which would be heated even if there was no business. No portion of the heat bill is an allowable business expense.