SI 00830: Unearned Income
TN 44 (10-91)
Citations:
Social Security Act as amended, Section 1612(b)(8);
20 CFR 416.1124(c)(4)
A. Definition
Home produce is food which a person catches in the wild or raises.
B. Policy
1. Home Produce Which is Consumed
Home produce is excluded from income if it is consumed by the individual or his or her household.
2. Home Produce Which is Sold
The proceeds from the sale of home produce are earned or unearned income according to the chart below:
| If the activity is . . . | and the individual is . . . | and the income was derived from land the income from which is. . . | then the value received is . . . |
|---|---|---|---|
| not a trade or business (RS 01802.002) | N/A | N/A | unearned income |
| not an Indian | N/A | net earnings from self-employment (NESE) | |
| A trade or business | an Indian | exempt from income tax by reason of a Federal statute or treaty | unearned income |
| not exempt from income tax by reason of a Federal statute or treaty | NESE |
C. Procedure
1. Assumption About Use
Assume that any home produce which an individual alleges will be used for personal or household consumption will be so used.
2. Amount of Home Produce Traded or Sold is Small
If the produce is basically raised for home consumption rather than as a business and the amount of produce traded or sold is small (e.g., extra eggs, home-canned beans, etc.), assume that the production costs equaled the value of what was received. No income is derived from such a trade or sale.
3. Accept Allegation
Accept an individual's allegations concerning the raising, catching, and consuming of home produce unless you have reason to question the allegation.
4. Documentation
If you apply an assumption from 1. or 2. above, document the allegation only. No further development or documentation is needed.