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Capital Gains

Capital gains are the profit a person or business receives from selling capital goods or equipment, property, or an investment.

Countable Amount

SNAP counts the total gain received from these sales as unearned gross self-employment income. This approach may differ from the federal tax approach where only a percentage of the sale is taxable and does differ from the Child Care Subsidy approach where this is exempt income.

Required Verification

As with all self-employment income, use the IRS tax form unless the business has existed for less than one year or experienced a substantial change. In these instances, use the available business records to anticipate future income.

Where to look on the IRS tax form?

When you have the IRS tax form, use the amount on line 16 of the Schedule D as the person’s unearned self-employment income.

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