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SNAP CERTIFICATION MANUAL – SECTION 5000 5600 Self-Employment Income 5663 Costs of Producing Self Employment Income

5663 Costs of Producing Self-Employment Income SNAP Manual 01/01/00 Costs of producing self-employment income are excluded from the gross income. Allowable costs include, but are not limited to, the identifiable costs of: • Labor such as wages and salaries paid to employees. (Wages paid to the business owner or other household members are NOT allowable costs.) • Stock. • Raw material and supplies. • Seed and plants. • Fertilizer and lime. • The interest (but not the principal) portion of payments on business or operating loans or payments on income producing real estate and capital assets like equipment, machinery or other durable goods. • Insurance premiums paid on buildings, equipment or other income producing property. • Taxes paid on income producing property. • Privilege taxes such as excise taxes that must be paid in order to earn self-employment income. • Licensing fees. • Business transportation costs. • Rental payments on income producing property. If a business owner is renting equipment with an option to buy, the rent payments are allowable until the purchase is made. • Utilities paid on business property. • Costs for the repair and maintenance of equipment. • Storage and warehousing costs. • Special equipment or clothing specifically needed to perform the job. (Blue jeans and work boots would not be considered special equipment since they are not specific to a particular job. Hip boots used by a fisherman would be considered special equipment. Welder’s shields or special gloves used by welders would be considered special equipment. Uniforms purchased to wear in a house cleaning operation would be considered special clothing.) • The cost of rooms and meals for any self-employed individual whose job takes him or her away from home and requires them to remain at the job siteovernight.