How does a person who is self-employed determine what their increase is in order to calculate tithing?

Dear Gramps,

How does a person who is self-employed determine what their increase is in order to calculate tithing? Some friends of mine who own their own business tell me that they pay tithing only on their personal draws, but it seems to me that if we are blessed with the means to buy better equipment for our business we should pay tithing on that. But, on the other hand, those who are employed by a company have all of their desks, computers, office supplies supplied by their employer and do not pay tithing on those things. Or do we just wait until we sell our business and pay tithing on the proceeds? What do you think?

Andi, from New Mexico

Dear Andi,

I think that the decision on what would constitute a full tithing in such cases as you mention would appropriately be the decision of each individual involved. Circumstances vary from one business condition to another, and these have been met in various ways by different people.

Some thoughts on the subject- If a person were to pay a full tithing on the gross income of a business and his profit level were less than 10% percent, it is obvious that he would soon be out of business. One way of defining increase in a business sense would income over expenditures. However, many businesses are incorporated, and the owners draw either a salary, a dividend or a bonus from their companies. The rest of the money stays in the name of the company. It would seem appropriate that those individuals would pay a tithing on their income from the business. However, I know of at least one circumstance where the owner paid a tithing on his income from the business, and then had his business pay a tithing on its profit.

Gramps