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self-employment earnings. Allowable costs of producing self-employment income include, but are not limited to: 1. Payments on the principal of the purchase price of income producing real estate and capital assets, equipment, machinery, and other durable goods even if the capital asset or durable good is not set up on a depreciation schedule. Capital assets and durable goods are objects used in business expected to last a long time such as farm machinery, equipment, swing sets, buildings, computers, cribs, VCRs, DVDs, furniture, highchairs, tricycles, vehicles, hair dryers, etc. 2. Interest paid to purchase income producing property, insurance premiums, and taxes paid on income producing property. 3. Labor paid to non-household members (individuals not included in the filing unit), materials, seeds, supplies, plants and fertilizer, interest payments on business loans and operating loans, business portion of home property or expense, repairs, etc. NOTE: Supplies include small tools, paper, pencils, scissors, oil, gas, envelopes, shampoo, hairbrushes, crayons/color books, etc. Supplies are generally described as objects usually used up or consumed in service. NOTE: Transportation costs for doing business may be allowed; however, the cost of commuting to the business from home is not allowed. Mileage expense is allowed at the Federal business expense rate. The current rate can be found by searching for the current year standard mileage rate on the Internal Revenue Service website. DEPENDENT CARE BUSINESS EXPENSES (Cost of meals): Household's income from dependent care, such as a providing day care for children, elderly, or disabled individuals may elect one of the following methods to determine the cost of meals provided to the individuals: 1. Actual documented meals; 2. A standard per day amount based on estimated meal costs; or, 3. Current reimbursement amounts in the Child and Adult Care Food Program. EXPENSES NOT ALLOWED FOR PRODUCING SELF-EMPLOYMENT INCOME: Non-allowable expenses must be added back into the self-employment income if income tax forms are used or not allowed as a deduction in the monthly calculation of self-employment income. Expenses not allowable include: 1. Net losses from previous periods. 2. Personal federal, state, and local income taxes; money set aside for retirement purposes; and other work-related expenses such as transportation to and from work. 3. Depreciation is added back into income when used as a deduction from self- employment income.