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What constitutes a "significant part" of production costs or equipment?

Excerpted from "Social Security Handbook". See the up-to-date, official Social Security Handbook at ssa.gov.

1226. What constitutes a "significant part" of production costs or equipment?

No precise amount can be defined as a significant part of the cost of production or of the tools, equipment and livestock. One-third or more of the total value of the tools, equipment and livestock used in producing the commodity or one-third or more of the total cost of producing the commodity would usually be considered a significant part. Whether less than one-third is a significant part depends on individual circumstances.

Last Revised: March, 2001

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