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Actual expenses for items other than the cost of food and meals can be used in addition to the state standard and child and adult care food program prices.

SNAP also allows payments on the principal of the purchase price of income producing real estate and capital assets. Capital assets may be vehicles, real property or equipment used in the self- employment business.

For TANF, the AG may have the greater deduction, either 40% of the gross income or actual verified expenses directly related to the production of income, deducted. (f4)

Net profit is the total income derived from a self- employment enterprise less allowable deduction. 3410.20.00 HOME USED FOR SELF-EMPLOYMENT (S)

When a room of an AG's home is used only for a self- employment enterprise, a prorated share of the interest paid on the mortgage is an allowable business cost.

When the SNAP AG qualifies for a Standard Utility Allowance #1, a utility expense cannot be deducted from the self-employment income. The chosen SUA is listed only as a utility expense on eligibility screen; a utility expense is not listed on self-employment eligibility page.

However, if the home is equipped with two meters, one for the AG's residence and one for the self-employment enterprise, the AG will receive a SUA for the residence. The actual utility bills are deducted from the self-employment income. The AG would not be entitled to use a standard utility allowance for the residence as well as a standard utility allowance for the self-employment enterprise in this situation. 3410.25.00 FARM LOSS BUDGETING (S)

If the cost of producing self-employment income exceeds the income derived from self- employment as a farmer, such losses are offset against any other countable income received by the AG.

Losses from farm self-employment enterprises are offset in two phases: • The first phase is an offsetting against nonfarm self-employment income. • The second phase is offsetting against the total of earned and unearned income.

For purposes of this provision, to be considered a self- employed farmer, the farmer must receive or anticipate receiving annual gross proceeds of $1000 or more from the farming enterprise. If less than $1000 annual gross income is anticipated, the farm loss calculation is not considered. 3415.00.00 BUDGETING BOARDER INCOME (S)

The income from boarders includes all direct payments to the AG for room and meals, including contributions to the AG's shelter expenses. (f6)