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MS 5320 [2]

the costs considered as a business expense, allow the deduction from the self-employment income, and do not allow shelter deductions. Receipt of the Low Income Home Energy Assistance Program (LIHEAP) does not override the individual’s option.

Document the case sufficiently to indicate all options were explained to the household and the option(s) chosen; and

15.The costs associated with attracting customers, such as advertising, meals, and promotional activities, travel, and expenses required for work and repairs to income-producing properties, are allowable expenses. (For example, taking a potential customer out for a business dinner is an allowable expense.)

B. The following items are not allowable costs:

1. Net losses from previous periods;

2. Losses from a different self-employment enterprise, whether or not that enterprise is still in existence, except for certain farm losses;

3. Work expenses of household members, which include 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. Costs whose purpose is for amusement, social activities, and related costs, such as meals, beverages, lodgings, rentals, transportation, and gratuities. These expenses are accounted for by the 20 percent earned income deduction. For example, going out to dinner while away on business is not an allowable cost.

4. Depreciation/depletion; and

5. Charitable contributions.