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MS 5320

[1]

Volume 2 - Supplemental Nutrition Assistance Program (SNAP) MS 5320 - R. 3/1/16 – OMTL - 496 Business Expenses

Business expenses are the portion of the income that represents the household's cost of doing business. Some are deducted from gross income. If an income tax return is provided as verification, only the Schedule C portion from the most recent income tax return is sufficient to verify self-employment gross income and business expenses. Enter each business expense into the system in the appropriate field. Expenses without a designated field are to be entered under “Other Expenses”.

A. The following are deductible expenses:

1. Wages, if paid to a non-household member;

2. Livestock or raw materials;

3. Rent of property or equipment;

4. Seed, fertilizer, and feed costs;

5. Utilities, maintenance costs, and repairs to income-producing properties;

6. Interest paid to purchase income-producing property;

7. Insurance premiums;

8. Taxes paid on income-producing property;

9. Mileage-if the individual uses their private vehicle in the performance of the self-employment enterprise, other than to and from the self-employment site, if other than where the individual lives. If the individual files a tax return, the amount on the tax return is used. If they do not file a tax return, use the Internal Revenue Service (IRS) business mileage rate for the time period the expense is claimed.

10.Tax preparation, professional or legal fees;

11.The Child Adult Care Food Program (CACFP) meal rate is used to calculate the cost of doing business for child day care;

12.Any costs allowed by the Internal Revenue Service and not listed in item B below;

13.Payments on the principal of the purchase price of income-producing real estate and capital assets, including purchased tobacco pounds, equipment, machinery, and other durable goods;

14.A household that operates a self-employment enterprise from home must be given the option of having shelter and/or utility expenses treated as a business expense or a shelter deduction. If the household chooses to have