20.3 Determining Monthly Income from Self-Employment.

A. The monthly net self-employment income is determined as follows: 1. Add the gross self-employment income (actual or anticipated) and capital gains; 2. Exclude the costs of producing the self-employment income; and 3. Divide the remaining amount of self-employment income by the number of months over which the income will be averaged. B. The monthly net self-employment income must be added to any other earned income received by the household to determine total monthly earned income. C. Capital Gains: The proceeds from the sale of capital goods or equipment must be calculated in the same manner as a capital gain for Federal tax income purposes. Even if only 50 percent of the proceeds from the sale of capital goods or equipment is taxed for Federal income tax purposes, MDHS must count the full amount of the capital gain as income for SNAP purposes. Source: 7 CFR §273.11(a)(2); 7 CFR §273.11(a)(3) Revised: March 2022