Page 23

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

23 Section 315 Change #01-2022 January 11, 2022 uses it for her own personal use. She is entitled to 50% of the vehicle expenses as a deduction for her business. E. Non-allowable Costs of Doing Business Include: 1. Costs of maintaining a business in the individuals place of residence such as rent, utilities, and property taxes are not allowed if the client receives these deductions per FNS 340.05 Shelter Deductions and FNS 340.09 Utility Expenses. Example: A self-employed individual provides a tax return that list a portion of the home’s rent and utilities as a business deduction. The household is receiving a shelter deduction for rent and the Standard Utility Allowance (SUA). Because the household has already been given a deduction for these expenses they cannot be allowed again as a business expense. Add those expenses back into the gross income. 2. Losses from previous periods. 3. Current or anticipated losses (except for self-employed farmers). 4. Depreciation claimed for tax purposes. 5. Deposits into the self-employed individual’s retirement account and/or payment for his life and health insurance. 6. The self-employed individual’s work-related expenses accounted for by the earned income deduction including federal, State, and local income taxes, and other work-related personal expenses, such as transportation expenses for the commute to and from the individual’s place of business. 7. Other personal expenses not related to the business, such as meals, clothing, etc. 8. Capital assets or equipment. 9. Expenses paid or incurred from last year’s crop production. 10. Wages, salaries, advances paid to the business owner. F. Procedures to Offset Farm Losses: 1. A loss from farming occurs when the cost of doing business is greater than the income received. When the annual gross receipts of a farmer are expected to be at least $1000, offset losses against other FNS unit income.