<p>Some of the things that probably get added back in are car expenses (lease, registration, insurance, gas, repairs/maintenance). The assumption is that the person needs a car anyway and must pay insurance. So, if the car lease/payments, registration, and insurance are added back in, that could be about $8k per year right there. </p>
<p>The deductions for gas, repairs and maintenace may be proportioned (60% business/40% personal)</p>
<p>I’m not sure how it all works, but some business owners think their income is their net. There have been people posting statements like, “My business takes in $150k, but after all costs (including their taxes, FICA, etc), we’re living on $50k per year.” those people are thinking that their net income is what FA will be based on.</p>