Current through Register Vol. 63, No. 9, September 1, 2024
(1) This rule
explains how to determine which costs are excluded from gross self-employment
income.
(2) In all programs except
the DSNAP, OSIP, OSIPM, and QMB programs, unless prohibited by section (4) of
this rule, and subject to the provisions of sections (7) and (8) of this rule
and OAR 461-145-0930, the necessary
costs of producing self-employment income are excluded from gross sales and
receipts including, but not limited to:
(a)
Labor (wages paid to an employee or work contracted out).
(b) Materials used to make a
product.
(c) In the SNAP program -
principal and interest paid to purchase income-producing
property (see OAR
461-001-0000), such as real
property, equipment, or capital assets. In all other programs, interest paid to
purchase income-producing property, such as equipment or
capital assets.
(d) Insurance
premiums, taxes, assessments, and utilities paid on income-producing
property.
(e) Service,
repair, and rental of business equipment, including motor vehicles, and
property that is owned, leased, or rented.
(f) Advertisement and business
supplies.
(g) Licenses, permits,
legal, or professional fees.
(h)
Transportation costs at 20 cents per mile, if the cost is part of the business
expense. Commuting expenses to and from the worksite are not part of the
business expense.
(i) Charges for
telephone service that are a necessary cost for self-employment.
(j) Meals and snacks provided by family day
care providers for children in their care, except the provider's own children.
The actual cost of the meals is used if the provider can document the cost. If
the provider cannot document the actual cost, the USDA meal reimbursement rates
are used.
(k) Materials purchased
for resale, such as cosmetic products.
(l) For newspaper carriers, the cost of
newspapers, bags, and rubber bands.
(3) In the OSIP, OSIPM, and QMB programs,
unless prohibited by section (5) of this rule, and subject to the provisions of
sections (7) and (8) of this rule and OAR
461-145-0930, the necessary
costs of producing self-employment income are excluded from gross sales and
receipts including, but not limited to:
(a)
Advertising.
(b) Car and truck
expenses.
(c) Commissions and
fees.
(d) Contract labor.
(e) Depletion.
(f) Depreciation.
(g) Employee benefit programs.
(h) Insurance, other than health.
(i) Mortgage interest.
(j) Legal and professional
services.
(k) Office
expenses.
(l) Pension and
profit-sharing plans.
(m) Rent or
lease of vehicles, machinery, equipment, and other business property.
(n) Repairs and maintenance.
(o) Supplies.
(p) Taxes and licenses.
(q) Travel, meals, and
entertainment.
(r)
Utilities.
(s) Wages, less
employment credits.
(t) Meals and
snacks provided by family day care providers for children in their care, except
the provider's own children. The actual cost of the meals is used if the
provider is able to document the cost. If the provider is unable to document
the actual cost, the USDA meal reimbursement rates are used.
(u) Materials purchased for resale, such as
cosmetic products.
(v) For
newspaper carriers, the cost of newspapers, bags, and rubber
bands.
(4) In all
programs except the OSIP, OSIPM, and QMB programs, the following costs are not
excluded from gross sales and receipts:
(a)
Business losses from previous months.
(b) Except in the SNAP program, payments on
the principal of the purchase price of income-producing real estate and capital
assets, equipment, machinery, and other durable goods.
(c) Federal, state, and local income taxes,
draws or salaries paid to any financial group member, money set aside for
personal retirement, and other work-related personal expenses, such as
transportation, personal business, and entertainment expenses.
(d) Depreciation. For purposes of this
section, "depreciation" means a prorated lessening of value assigned to a
capital asset (see OAR
461-001-0000) based on its
useful life expectancy and initial cost.
(e) Costs related to traveling to another
area to seek business when there is no reasonable possibility of deriving
income from the trip.
(f) Interest
or fees on personal credit cards.
(g) Personal telephone charges.
(h) Shelter or utility costs associated with
the individual's home, except as authorized by section (7) of this
rule.
(5) In the OSIP,
OSIPM, and QMB programs, the following costs are not excluded from gross sales
and receipts:
(a) Federal, state, and local
income taxes.
(b) Costs related to
traveling to another area to seek business when there is no reasonable
possibility of deriving income from the trip.
(c) Interest or fees on personal credit
cards.
(d) Personal telephone
charges.
(e) Shelter or utility
costs associated with the individual's home, except as authorized by section
(7) of this rule.
(6) In
the DSNAP (461-101-0010) program,
self-employment costs include out of pocket disaster-related expenses the
household has paid or is expected to pay during the disaster benefit period
authorized by FNS and where the expenses are not expected to be reimbursed
during the disaster period. If the household has received or reasonably
anticipates receiving a reimbursement for part or all of the expenses during
the disaster benefit period, only the net expense to the household is
deductible. The necessary costs of producing self-employment income are
excluded from gross sales and receipts including, but not limited to:
(a) Damage or destruction to self-employment
business.
(b) Equipment and
supplies.
(c) Disaster-damaged
vehicle expenses.
(d) Business
property protection.
(e)
Storage.
(f) Clean-up.
(g) Costs paid by credit card are excluded
unless the bill is also paid during the benefit period.
(h) Costs listed in (2) that are incurred
during the disaster benefit period.
(7) The exclusions for items used for both
business and personal purposes, such as automobiles and a residence, including
utilities, are limited by the following subsections:
(a) In the OSIP, OSIPM, and QMB programs, the
portion of the expense that is for business use only is excluded.
(b) In the SNAP program, costs are excluded
for a separate office or shop located on the property used as a home, if the
costs are billed separately from the residence. Costs for other items used for
both business and personal use are excluded.
(8) If no member of the financial
group (see OAR
461-110-0530) has been
self-employed for a sufficiently long period to ascertain the costs of
self-employment, the costs may be estimated.
Statutory/Other Authority: ORS
409.050,
411.060,
411.070,
411.404,
411.816,
412.006,
412.049,
413.085 &
414.619
Statutes/Other Implemented: ORS
409.050,
411.060,
411.070,
411.404,
411.816,
412.006,
412.049,
413.085,
414.619, ORS
409.010 &
414.117
