OAR 461-145-0920
Self-Employment; Costs that are Excluded to Determine Countable Income


(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 (Self-Employment; Determination of Countable Income), 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 (Definitions for Chapter 461)), 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 (Self-Employment; Determination of Countable Income), 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 (Definitions for Chapter 461)) 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 Acronyms and Overview)) 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 ERDC, 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 (Financial Group)) has been self-employed for a sufficiently long period to ascertain the costs of self-employment, the costs may be estimated.

Source: Rule 461-145-0920 — Self-Employment; Costs that are Excluded to Determine Countable Income, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=461-145-0920.

461–145–0000
Achieving a Better Life Experience (ABLE) Act
461–145–0001
Adoption Assistance
461–145–0005
Agent Orange Disability Benefits
461–145–0008
Alaska Permanent Fund Dividend
461–145–0010
Animals
461–145–0020
Annuities
461–145–0022
Annuities
461–145–0025
Approved Accounts
461–145–0030
Bank Account
461–145–0035
Black Lung Benefits
461–145–0040
Burial Arrangements and Burial Fund
461–145–0050
Burial Space and Merchandise
461–145–0060
Cash
461–145–0080
Child Support and Cash Medical Support
461–145–0086
Contributions
461–145–0087
Coronavirus Aid, Relief, and Economic Security (CARES) Act
461–145–0088
Corporations and Business Entities
461–145–0089
Corporations and Other Business Entities
461–145–0090
Disability Benefit
461–145–0100
Disaster Relief
461–145–0105
Disqualifying Income
461–145–0108
Dividends, Interest and Royalties
461–145–0110
Domestic Volunteer Services Act (VISTA, RSVP) and Small Business Act (SCORE, ACE)
461–145–0120
Earned Income
461–145–0130
Earned Income
461–145–0140
Earned Income Tax Credit (EITC)
461–145–0143
Economic Recovery Payment
461–145–0145
Educational Account
461–145–0150
Educational Income
461–145–0170
Energy Assistance Payments
461–145–0175
Family Abuse Prevention Act (FAPA) Payments
461–145–0184
Filipino Veterans Equity Compensation Fund
461–145–0185
Floating Homes and Houseboats
461–145–0190
Food Programs Other Than the SNAP program
461–145–0200
Foster Care Payments and Guardianship Assistance Benefits
461–145–0210
Gifts and Winnings
461–145–0220
Home
461–145–0230
Housing and Urban Development
461–145–0240
Income-Producing Sales Contract
461–145–0250
Income-Producing Property
461–145–0252
Income-Producing Property
461–145–0255
Youth Transitions Program Subsidies
461–145–0259
Indian (Native American) Benefits
461–145–0260
Indian (Native American) Benefits
461–145–0261
Individual Development Account (IDA)
461–145–0270
Inheritance
461–145–0280
In-Kind Income
461–145–0285
Japanese-American Restitution Payments
461–145–0290
Job Corps
461–145–0300
Workforce Investment Act
461–145–0310
Life Estate
461–145–0320
Life Insurance
461–145–0330
Loans and Interest on Loans
461–145–0340
Lodger Income
461–145–0343
Manufactured and Mobile Homes
461–145–0345
Military Income
461–145–0348
Mineral Rights
461–145–0360
Motor Vehicle
461–145–0365
National and Community Services Trust Act (NCSTA), including AmeriCorps (other than AmeriCorps VISTA)
461–145–0370
Older Americans Act
461–145–0380
Pension and Retirement Plans
461–145–0390
Personal Belongings
461–145–0400
Personal Injury Settlement
461–145–0405
Plan for Self-support
461–145–0410
Program Benefits
461–145–0415
Radiation Exposure Compensation Act
461–145–0417
Railroad Retirement Payments
461–145–0420
Real Property
461–145–0430
Real Property Excluded under an Interim Assistance Agreement
461–145–0433
Recreational Vehicles
461–145–0435
Refunds
461–145–0440
Reimbursement
461–145–0455
Resettlement and Placement (R&P) Grants
461–145–0460
Sale of a Resource
461–145–0470
Shelter-in-Kind Income
461–145–0490
Social Security Benefits
461–145–0500
Social Secuirty Death Benefit
461–145–0505
Spousal Support
461–145–0510
SSI
461–145–0520
Stocks, Bonds and Other Securities
461–145–0525
Strikers’ Benefits
461–145–0530
Tax Refund
461–145–0540
Trusts
461–145–0550
Unemployment Compensation Benefit
461–145–0560
Uniform Relocation Act
461–145–0570
USDA Meal Reimbursement
461–145–0580
Veterans’ Benefits
461–145–0582
Victims’ Assistance
461–145–0583
Virtual Currency or Cryptocurrency
461–145–0585
Vocational Rehabilitation Payment
461–145–0590
Workers Compensation
461–145–0600
Work-Related Capital Assets, Equipment, and Inventory
461–145–0810
Deemed Assets
461–145–0820
Deemed Assets
461–145–0830
When to Deem the Assets of a Sponsor of a Noncitizen and How Income is Deemed
461–145–0860
Deemed Assets, Parent of Minor Parent
461–145–0910
Self-Employment
461–145–0915
Self-Employment
461–145–0920
Self-Employment
461–145–0930
Self-Employment
461–145–0931
Additional Exclusions for Farming Costs
Last Updated

Jun. 8, 2021

Rule 461-145-0920’s source at or​.us