Department of Social Services
Family Support Division
PO Box 2320
Jefferson City, Missouri
TO: ALL FAMILY SUPPORT OFFICES
FROM: KIM EVANS, DIRECTOR
SUBJECT: INTEREST PAID ON BUSINESS LOAN FOR SELF-EMPLOYMENT FOR MO HEALTHNET FOR THE AGED, BLIND AND DISABLED (MHABD)
MANUAL REVISION #
The purpose of this memorandum is to inform staff of manual revisions to Section 0805.015.15 of the MO HealthNet for the Aged, Blind, and Disabled Manual.
Revisions have been added to further explain allowable overhead expense deductions, and clarify expenses not considered as allowable deductions from income producing property or self-employment. This section also describes what is considered as an “overhead expense”.
Staff should deduct business related loan interest payments when determining “overhead expenses” for income producing property or self-employment enterprises. Interest payments made on a verifiable business loan for the purpose of doing business may be considered an “overhead expense”. Principal payments made on business loans; however, should not be considered as a business expense related to income producing property or self-employment.
- Review this memorandum with appropriate staff.