10:87-7.5 Allowable costs of producing self-employment income

(a) Allowable costs of producing self-employment income include, but are not limited to, the identifiable costs of labor, stock, raw material, seed, fertilizer, payments on the principal of the purchase price of income-producing real estate and capital assets, equipment, machinery, and other durable goods, interest paid on the purchase of income- producing property, insurance premiums and taxes paid on income-producing property. (b) The following items shall not be allowable as a cost of doing business. 1. Net losses from previous periods; 2. Federal, State and local income taxes; 3. Money set aside for retirement purposes and other work related personal expenses (such as transportation to and from work); 4. Depreciation of equipment, machinery or other capital investments; and 5. Any amount that exceeds the payment a household receives from a boarder for lodging and meals. (c) When calculating the costs of producing self-employment income, CSSAs may elect to use actual costs for allowable expenses in accordance with (a) and (b) above, or determine self-employment expenses as follows: 1. For income from day care, use the current reimbursement amounts used in the Child and Adult Care Food Program or a standard amount based on estimated per- meal costs. i. For NJ SNAP recipients who derive income from the provision of day care, CSSAs shall deduct from the day care income earned by the recipient, as a cost of doing business, any actual documented costs of providing meals. 2. For income from boarders, other than those in commercial boarding houses or from foster care boarders, use: i. The maximum NJ SNAP allotment for a household size that is equal to the number of boarders; or ii. A flat amount or fixed percentage of the gross income, provided that the method used to determine the flat amount or fixed percentage is objective and justifiable and is stated at N.J.A.C. 10:87. 3. For income from foster care boarders, use the standard amount that is used for TANF purposes. History HISTORY: As amended, R.1984 d.17, effective February 6, 1984. See: 15 N.J.R. 1821(a), 16 N.J.R. 246(a). Added depreciation as cost of producing income. Recodified from N.J.A.C. 10:87-7.8 and amended by R.2004 d.181, effective May 17, 2004. See: 36 N.J.R. 28(a), 36 N.J.R. 2425(a). Rewrote the section. Former N.J.A.C. 10:87-7.5, New self-employment enterprise, repealed. Amended by R.2007 d.129, effective May 7, 2007. See: 38 N.J.R. 4374(a), 39 N.J.R. 1719(a). In the introductory paragraph of (c), inserted "in accordance with (a) and (b) above, or determine self-employment expenses". Administrative change. See: 44 N.J.R. 1529(a).