Allowable Costs of Producing Self-Employment Income

Allowable Costs of Producing Self-Employment Income. Most costs of producing self-employment income are deductible, with some exceptions. Allowable self-employment expenses include, but are not limited to: A. Labor expenses, including employer taxes, insurance premiums, and wages; B. Insurance premiums for buildings, business vehicles, machinery, and trade; C. Payments (principal and interest) for the purchase prices of income-producing real estate, capital assets, equipment, machinery and payments for maintenance, repairs and storage; D. Supplies such as feed, fertilizer, plants, raw materials, seeds, stock; and E. Taxes paid on income producing property.