Household Income and Expenditure Survey 2005
Micronesia, Fed. Sts., 2005
Created on
Jul 10, 2013
Last modified
Mar 29, 2019
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Business income (business)
Data file: Person
Overview
Valid:
0
Invalid:
0
Type:
Continuous
Decimal:
0
Start:
246
End:
251
Width:
6
Range:
-
Format:
Questions and instructions
Question pretext
26 The following questions are about income received during 2004. If an exact amount is not known, accept a best estimate. Report dollar amounts ONLY; do not report cents - if cents are reported, round to the nearest dollar amount.
Literal question
26b How much did ... earn from (his/her) own farm or nonfarm business, proprietorship, or partnership?
Interviewer instructions
GENERAL INSTRUCTIONS FOR INCOME QUESTIONS 26 TO 27
1. CONVERT TO ANNUAL TOTAL
Be sure that the dollar amounts represent the total amount received during the 12 months of 2004 for the particular type of income. If, for example, the amount is given in terms of a weekly or monthly payment, find out how many weeks or months it was received in 2004 and convert it to an annual total.
2. USE OF INCOME TAX FORM
Accept answers from an income tax form if the person offers them. Do not, however, ask the respondent to refer to income tax forms.
If an income tax form is used, make certain the amounts you enter for each person are for that person only; many income tax returns show the combined income of husband and wife. Also remind the respondent that certain types of income are not taxable (for example, unemployment compensation and public assistance). Ask whether the person received any such additional money income in 2004.
If Form 1040 contains the combined income of husband and wife, find out what share was received by each person.
3. WHAT TO DO IF A RESPONDENT IS UNWILLING TO ANSWER INCOME QUESTIONS
a. Stress Confidentiality
If the respondent fears that the income data will be disclosed to other persons or to other government agencies, explain that you, as well as other census employees, are sworn to keep the answers confidential. The law provides penalties of imprisonment and fine for disclosures. Not even agents of the Federal Bureau of Investigation (FBI) or the Internal Revenue Service (IRS) can look at census records. Explain that data about individuals are never published; only statistical summaries of groups of people are published and only in a way that no individual can be identified.
b. Explain Why Tax Returns Alone Are Not Enough
If the respondent does not understand why the data cannot be obtained from income tax returns instead of being asked in the census, explain that the income data given on tax returns cannot be used to meet all statistical needs because not all people file returns and not all kinds of income are taxable (and hence are not reported on tax returns).
Also, the tax returns do not show age, family relationship, education, and other items needed to study the social and economic status of the people of FSM.
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If the person did subsistence activities in 2004, and they summed the amounts in question 25, then the amount in question 26b must be the sum of those payments as well as any other business income.
FOR OWN NONFARM BUSINESS, PROPRIETORSHIP, OR PARTNERSHIP:
1. Total money receipts - Include as total (gross) money receipts all money received from goods sold or services rendered plus the value of any net inventory increase.
2. Business expenses - Include as business expenses the cost of merchandise purchased; expense for rent, heat, light, and power used in the business; annual depreciation of machinery and other business property; accidental damages to business property; decrease in the value of inventory; wages and salaries paid to employees; expense allowances; business taxes; interest on business mortgages or debts, etc. Do not count as business expenses money spent for the purchase of buildings or machinery, or for permanent improvements of existing buildings or machinery. However, count the annual depreciation on such improvements or purchases as an expense. Do not count personal expenditures, such as money spent for personal income taxes, life insurance, food, and shelter as business expenses. The so-called salary that some owners of unincorporated businesses pay themselves is not a business expense. Count these "salaries" as part of gross receipts.
FOR FARM BUSINESS:
1. Total money receipts - Include as total money receipts, income received from: (1) the sale of farm products, (2) participation in government farm programs such as payments for natural crop disasters, price supports, or incentive payments, (3) net income from custom farm work, (4) net income from recreational services provided by the farmer such as proceeds from hunting and fishing, or camping, and (5) commodity credit loans which were not repaid in 1994.
2. Farm operating expenses - Include as farm expenses the cost of 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 or cash profits paid to the owner, interest on farm mortgages, building repairs, depreciation on farm equipment, farm taxes, etc.
3. Sharecroppers and tenant farmers - Sharecropper and tenant farmers generally live on and farm land owned by another (landlord). Many types of arrangements can be made between the landlord and farmer by which the farmer receives payment. For example, the farmer may receive a specified share of the crop or the farmer may pay the landlord a predetermined amount. The landlord may extend credit to the farmer or pay advances on the farmer's share of the crop before the crop is harvested. Any cash or credit advances should be added to the amount of cash settlement (between farmer and landlord) on the crop to obtain net income.
1. CONVERT TO ANNUAL TOTAL
Be sure that the dollar amounts represent the total amount received during the 12 months of 2004 for the particular type of income. If, for example, the amount is given in terms of a weekly or monthly payment, find out how many weeks or months it was received in 2004 and convert it to an annual total.
2. USE OF INCOME TAX FORM
Accept answers from an income tax form if the person offers them. Do not, however, ask the respondent to refer to income tax forms.
If an income tax form is used, make certain the amounts you enter for each person are for that person only; many income tax returns show the combined income of husband and wife. Also remind the respondent that certain types of income are not taxable (for example, unemployment compensation and public assistance). Ask whether the person received any such additional money income in 2004.
If Form 1040 contains the combined income of husband and wife, find out what share was received by each person.
3. WHAT TO DO IF A RESPONDENT IS UNWILLING TO ANSWER INCOME QUESTIONS
a. Stress Confidentiality
If the respondent fears that the income data will be disclosed to other persons or to other government agencies, explain that you, as well as other census employees, are sworn to keep the answers confidential. The law provides penalties of imprisonment and fine for disclosures. Not even agents of the Federal Bureau of Investigation (FBI) or the Internal Revenue Service (IRS) can look at census records. Explain that data about individuals are never published; only statistical summaries of groups of people are published and only in a way that no individual can be identified.
b. Explain Why Tax Returns Alone Are Not Enough
If the respondent does not understand why the data cannot be obtained from income tax returns instead of being asked in the census, explain that the income data given on tax returns cannot be used to meet all statistical needs because not all people file returns and not all kinds of income are taxable (and hence are not reported on tax returns).
Also, the tax returns do not show age, family relationship, education, and other items needed to study the social and economic status of the people of FSM.
-----------------------------------------------------
If the person did subsistence activities in 2004, and they summed the amounts in question 25, then the amount in question 26b must be the sum of those payments as well as any other business income.
FOR OWN NONFARM BUSINESS, PROPRIETORSHIP, OR PARTNERSHIP:
1. Total money receipts - Include as total (gross) money receipts all money received from goods sold or services rendered plus the value of any net inventory increase.
2. Business expenses - Include as business expenses the cost of merchandise purchased; expense for rent, heat, light, and power used in the business; annual depreciation of machinery and other business property; accidental damages to business property; decrease in the value of inventory; wages and salaries paid to employees; expense allowances; business taxes; interest on business mortgages or debts, etc. Do not count as business expenses money spent for the purchase of buildings or machinery, or for permanent improvements of existing buildings or machinery. However, count the annual depreciation on such improvements or purchases as an expense. Do not count personal expenditures, such as money spent for personal income taxes, life insurance, food, and shelter as business expenses. The so-called salary that some owners of unincorporated businesses pay themselves is not a business expense. Count these "salaries" as part of gross receipts.
FOR FARM BUSINESS:
1. Total money receipts - Include as total money receipts, income received from: (1) the sale of farm products, (2) participation in government farm programs such as payments for natural crop disasters, price supports, or incentive payments, (3) net income from custom farm work, (4) net income from recreational services provided by the farmer such as proceeds from hunting and fishing, or camping, and (5) commodity credit loans which were not repaid in 1994.
2. Farm operating expenses - Include as farm expenses the cost of 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 or cash profits paid to the owner, interest on farm mortgages, building repairs, depreciation on farm equipment, farm taxes, etc.
3. Sharecroppers and tenant farmers - Sharecropper and tenant farmers generally live on and farm land owned by another (landlord). Many types of arrangements can be made between the landlord and farmer by which the farmer receives payment. For example, the farmer may receive a specified share of the crop or the farmer may pay the landlord a predetermined amount. The landlord may extend credit to the farmer or pay advances on the farmer's share of the crop before the crop is harvested. Any cash or credit advances should be added to the amount of cash settlement (between farmer and landlord) on the crop to obtain net income.
Question post text
Report net income after business or operating expenses. Farm business includes products grown as subsistence such as taro, betelnut, etc., but were actually sold last year; non-farm includes subsistence fishing but the fish were actually sold.
Description
Universe
For persons 15 years old and over