31b. Last year, how much money did he earn working in his own business, professional practice, or farm? (Enter net income or None)
Item 31b. Income from own business, professional practice, or farm
236. Item 31b. Entry for each sample person 14 years old and over.-There must be an entry of an amount or a check in the "None" box for each person 14 years of age and over who is on a sample line. The amount must be entered to the nearest whole dollar, not in dollars and cents. Enter "10,000+" if amount received was more than $10,000. Enter "Even" if business receipts just balance expenses. Enter "Loss" above amounts if there was a loss. Accept the respondent's best estimate if he does not know the exact amount.
237. Time period covered by item 31b.-January 1, 1949, through December 31, 1949.
238. General definition of income from own business (including profession and farm operation):
a. Business income.-Net money income or profit from the operation of a business consists of total (or gross) money receipts less the business expenses.
1. Total money receipts.-Value of all goods sold or services rendered. Include the value of any net inventory increase.
2. Business expenses.-Include cost of merchandise purchased; rent, heat, light, and power expenses of the business quarters; depreciation of machinery and other business property; decrease in the value of inventory; wages and salaries paid to employees; business taxes; interest on the business mortgages and debts. Capital expenditures, such as the purchase of new buildings or machinery, or permanent improvements of existing buildings or machinery) should not be considered as expenses. Only the annual depreciation on such improvements or purchases is expenses. Personal expenses for such things as food, shelter, personal taxes, life or health insurance, improvement of living quarters, or purchase of bonds, should not be considered as business expenses.
b. Farm income.-Net money income or profit from the operation of a farm consists of total (or gross) money receipts less the farm expenses.
1. Total money receipts.-Money received from the sale of farm products. Include as receipts loans made by the Government on cotton and other crops, income from the hire of teams or from rental of farm machinery to other farmers, and incidental receipts from sale of wood, sand, gravel, rocks, etc. Do not include as receipts the value of food, fuel, or other farm products used for family living.
2. Farm expenses.-Include feed, fertilizer, seeds, bulbs, plants, trees, sprays, insecticides, hardware, dairy supplies, tools, livestock purchases, rental of machinery, cash wages for farm hands, cash rent paid, interest on farm mortgage, farm building repairs, depreciation of farm equipment, farm taxes. Do not include as farm expenses personal income tax, poll tax, improvements in the farmer's house, capital expenditures such as the purchase of land, buildings, or machinery.
239. Some specific types of income from own business:
.-A fee is a charge for professional or other services rendered. The net income (fees minus expenses incurred in connection with the professional practice) should be entered as "Income from own business" in item 31b.
.-An unincorporated business in which two or more persons contract to do business together and share the profits. The net income received by a person from a business in which he worked as a partner should be entered as "Income from own business" in item 31b.
.-Money earned from copyrights, patents, good will, trademarks, formulas, should be entered as "Income from own business" in item 31b. Money received from property producing gas, oil, copper, timber, etc. which is owned but not operated, should be entered as "Other income" in item 31c and not in item 31b.
d. "Salaries" of owners
.-Some owners of unincorporated businesses may pay themselves a "salary." Such "salaries" should be entered as "Income from own business" in item 31b.