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EXAMPLES OF OPERATING EXPENSES INCURRED FOR SELF-EMPLOYED INDIVIDUALS

• Costs of goods sold • Laundry and cleaning • Advertising • Legal and professional services • Bad debts from sales or services • Office supplies and postage • Car and truck expenses • Rent on business property • Commission • Supplies • Employee benefit programs • Utilities and telephone • Freight/shipping costs • Wages • Insurance • Interest on business indebtedness • Transportation other than to and from work and child care

EXAMPLES OF OPERATING EXPENSES RELATED TO FARM INCOME • Costs of goods sold • Veterinary fees, medicine • Cost of labor • Gasoline, fuel, or oil • Repairs and maintenance • Storage, warehousing • Interest • Insurance • Rent of farm, pasture • Utilities • Feed purchased • Freight, trucking • Seeds or plants purchased • Conservation expenses • Fertilizers, lime, and chemicals • Land clearing expenses • Cost of machines leased • Employee benefit programs • Supplies purchased • Breeding fees EXPENSES NOT ALLOWED AS OPERATING EXPENSES FOR SELF-EMPLOYMENT OR FARMING • Depreciation • Personal transportation • Purchase of capital equipment • Payments of the principal of loans • Business-related entertainment expenses • Personal business expenses such as subscriptions, dues to professional organizations, and unions