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ESA SNAP Policy Manual 132  Advertising costs  Accounting and legal fees  Professional licensing fees and union dues − Proportional costs to maintain the person’s home as a place of business, such as rent and utilities. If a business is operated in the home, only the portion of utilities, rent or mortgage used for the business may be deducted. The following expenses cannot be excluded from self-employment income:  Depreciation on equipment, real estate or other capital investments  A net loss from a previous period  Federal, state and local income taxes paid for the self-employed individual  Personal entertainment or other personal business expenses  Money set aside for retirement  Any amount that exceeds the payment a household receives from a boarder for lodging and meals  Transportation costs to and from work 11.2.1.3 Self-Employment: Farming Self-employed farmers, unlike other self-employed individuals, can deduct losses from farming from other household income if their actual or anticipated proceeds are $1,000 or more for the year. ESA deducts a farm loss from other income of the household as follows:  Deduct the net farm loss from any other self-employment income of the household.  If a net farming loss remains, deduct it from any other countable income of the household after allowing the earned income deduction.  Prorate the loss over the year to determine a monthly amount to deduct from other income sources.  The previous year’s tax return is the usual basis to calculate the farming income. 11.2.1.4 Budgeting Self-Employment Income Countable earnings from self-employment are the total income received minus allowable expenses of producing the income. If the allowable expenses exceed the total proceeds, the amount of the loss cannot offset any other income. The most current tax return, including all schedules, often provides all information necessary to calculate self-employment income. The 2018 IRS tax reforms eliminated most expenditures that would not be allowable for public benefits.  Use the IRS Schedule C for sole proprietors to calculate all expenses except depreciation. Return