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Chapter: 1800 Income

Program: CIC 7 3. rent and cost of building maintenance; 4. business telephone costs; 5. costs of operating a motor vehicle when required in connection with the operation of the business; 6. interest paid to purchase income producing property; 7. insurance premiums and taxes paid on income producing property; 8. costs for feed for work stock; 9. cost of meals and equipment for children for whom child care is provided in the home; and 10. travel and lodging, but not meals, away from home. 1850.0303 Costs Not Allowed (CIC) The following expenses will not be allowed as a cost of producing self-employment income:

1. payments on the principal of the purchase price of income producing real estate and capital assets, equipment, machinery and other durable goods; 2. net losses from previous periods; 3. 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), as these expenses are accounted for by the 20% earned income adjustment and earned income disregards; and 4. depreciation.

The following expenses will not be allowed as a cost of producing self-employment income for TCA, CIC and RAP:

1. depreciation, 2. Social Security and income tax deductions, 3. child care costs (not an allowable expense if he is a child care provider, even if he pays someone else for care), and 4. transportation to and from work.

Note: Business equipment and supplies are considered assets for TCA, CIC, RAP and MFAM. Business equipment and supplies are excluded as assets in FS. 1850.0306 Earned Income from Farming (CIC) Farming is any activity involving raising crops, livestock, and poultry to sell for profit rather than solely for family consumption. Profits from farming are gross income.

Farming individuals must provide their most recent income tax return to the eligibility specialist. If there is no tax return, the individual must provide bills and receipts or any other records of sales and expenses. The eligibility specialist may consult with the County Agricultural Agent to determine the accuracy of the income and expenses and whether any money from a subsidy, loan, or Government Farm Program has been received. 1850.0307 Allowable Costs (CIC) Recognized operating costs include:

1. seed, 2. feed, 3. fertilizer, 4. supplies, 5. labor, 6. fuel, 7. pesticides, and