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Title 7: SNAP Page 66 Iowa Department of Health and Human Services Employees’ Manual Chapter I: Specific Households and Participants Self-Employed Households Revised February 13, 2026 Income  If a self-employed person who works out of the home claims a percentage of the utility expense as a business expense, allow the applicable standard utility allowance as a shelter deduction and nothing for the business. Rental Income Legal reference: 7 CFR 273.9(b)(2)(ii) If a household member manages a rental property an average of 20 or more hours a week, the rental income is earned. If a household member does not manage the property at least 20 hours a week, the rental income is unearned. Property Sold on Contract Legal reference: 7 CFR 273.9(b)(2)(ii) Count income from installment sales contracts as unearned self-employment income. Count the net income, after allowable expenses, over the period of time a payment is intended to cover. For example, if the household receives a payment once a year, prorate the net income over one year. If payment is received monthly, count the net income monthly. When a household that sells property on contract is responsible for the mortgage payment for that property, deduct taxes, insurance, and both the principal and interest portions of the mortgage payment from the contract income. Offsetting Loss in One Enterprise From Gains in Another Legal reference: 7 CFR 273.11(a)(2)(iii) If the household has more than one self-employment enterprise, offset the self- employment losses from one enterprise against the profits of another enterprise. Do not carry over losses from prior years. If the household has both earned or unearned self-employment income, offset the loss from the profit of each type of self-employment income separately. If both types of self-employment income show a profit at this point, allow the 20 percent earned income deduction only for the earned self-employment income.