Determining monthly income from self-employment.

(ii)

(a) For those households whose self-employment income is not averaged as described above, but is instead calculated on an anticipated basis, add any capital gains the household anticipates it will receive in the next 12 months, starting with the date the application is filed, and divide this amount by 12.

(b) This amount shall be used in successive certification periods during the next 12 months, except that a new average monthly amount shall be calculated over this 12-month period if the anticipated amount of capital gains changes. Add the anticipated monthly amount of capital gains to the anticipated monthly self-employment income, and subtract the cost of producing the self-employment income. The cost of producing the self- employment income shall be calculated by anticipating the monthly allowable costs of producing the self-employment income.

(iii) The monthly net self-employment income will be added to any other earned income received by the household. The total monthly earned income, less the 20-percent earned income deduction as specified in section 387.12(b) of this Part, will then be added to all monthly unearned income received by the household. The standard deduction, dependent care, and shelter costs will be computed as for any other household and subtracted to determine the monthly net income of the household.