The business is a general partnership and I'm a 50% partner. My share of the profit was the $13,000 stated earlier (again, that's my only income). Looking at Section 8-013 the only thing I see that could affect my income is that they don't allow depreciation as a deduction, but according to the IRS I have to depreciate ALL of my INVENTORY over a course of 3 years instead of just expensing it (video rental shop - yes, they still exist, barely). So that could mean that they counted $19,000 worth of inventory expenses as income! I don't know a way around this because I have to report my expenses to the IRS that way. I know it sounds weird and wrong, but there is a specific audit guide for video stores, which states that all DVDs for rental have to be depreciated using a straight-line method.
Having them count this inventory expense as income (or are they counting it as assets?), though, would seem to conflict with THIS rule for CMSP eligibility:
"Exempt property: applicant’s home, clothing, one car, and certain other
things such as items necessary for self-employment (building, INVENTORY, bank account) or used on the job (tools, second car, etc.)."
If I didn't buy DVDs for my video rental store, I would not be able to operate my store, obviously. Shouldn't inventory count as a deduction, whether I have to depreciate it or not? It's obviously necessary to run my business.
I know this is a weird case and there are probably not a lot of self-employed people who apply for CMSP, and especially not people with really weird business tax rules like that.