QUESTION:

How do you calculate income of a self-employed parent for child-support purposes?

ANSWER:

In Glass v. Oeder, 716 N.E. 2d 413 (Ind. 1999) the Court calculated the income of a self-employed parent for child-support purposes by subtracting ordinary and necessary business expenses from gross receipts.

The Court also found that the shareholder of a wholly owned subchapter S corporation should be treated the same as a self-employed person operating the business.

Depreciation in a self-employed business is a proper expense, but the proper amount is highly fact sensitive.