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(a)
When a member of the household receives income
from self-employment, he/she shall be required to keep a record of expenses
incurred in the production of this income.
(b) Expenses
1.
Allowable costs of producing self-employment
income include, but are not limited to:
(i)
Identifiable costs of labor (salaries,
employer’s share of SS, insurance, etc.);
(i)
Stock, raw materials, seed and fertilizer,
feed for livestock;
(ii)
Rent and cost of building maintenance;
(iii)
Business telephone costs;
(iv)
Costs of operating a motor vehicle when required
in connection with the operation of the business;
(v)
Interest paid to purchase income producing
property;
(vi)
Insurance premiums and taxes paid on income
producing property;
(vii)
Costs of feed for work stock; or
(viii) Costs
of meals and equipment for children for whom day care is provided in the
applicant/recipient’s home.
2.
Unallowable Deductions
The following items are not
considered as a cost of producing self-employment income:
(i)
Payments on the principal of the purchase
price of income producing real estate and capital assets, equipment,
machinery, and other durable goods;
(ii)
Net losses from previous periods;
(iii)
Federal, state, and local income taxes, money
set aside for retirement purposes, and other work related personal expenses
(such as transportation to and from work). These expenses are accounted for
the 20% earned income deduction in the Food Stamp Program.;
(iv)
Costs of producing home produce intended for
family consumption;
(v)
Family living expenses; or
(vi)
Depreciation.
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