Page 22

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

22 Section 315 Change #01-2022 January 11, 2022 6. Cost of goods, supplies, and materials, livestock, seed, and fertilizer. NOTE: Allow the expense for purchase of goods for resale in the month incurred. EXAMPLE: An Avon representative purchases $300 worth of products in October to sell in December. Allow the $300 expense in October when incurred. Count the income from resale in December when received. 7. Advertising costs. 8. Accounting and legal fees. 9. State and local sales taxes paid. 10. Professional licenses, permits, and taxes, if necessary, to practice a profession or trade. 11. Transportation costs necessary to produce income. The transportation deduction is not to exceed the federal mileage rate for income tax purposes. 12. Actual costs of providing meals as part of the business, such as baby- sitting. 13. Insurance premiums on business equipment 14. For sharecroppers, the percentage of gross sales paid to the landowner for the use of the land 15. For operation of non-commercial boarding houses, deduct the greater of the following: a. The maximum FNS benefit allotment (also known as the Thrifty Food Plan) for a FNS unit size that is equal to the number in the boarder household; or b. The verified actual separate and identifiable costs of providing room and meals if the actual costs exceed the appropriate Thrifty Food Plan for the number in the boarder household. If an item is used for purposes other than producing income, prorate the expense using the percentage of time the item is used to produce income. EXAMPLE: A self-employed child-care provider uses her vehicle 50% of the time in her business. The other 50% of the time she