Rental Income
CONNECTICUT DEPARTMENT OF INCOME MAINTENANCE
UNIFORM POLICY MANUAL
______________________________________________________________________________
Date: 1-1-88 Transmittal: UP-88-21 5050.69
______________________________________________________________________________
Section: Type:
Treatment of Income POLICY
______________________________________________________________________________
Chapter: Program: AFDC
Treatment of Specific Types AABD
_______________________________________________________________ MA
Subject:
Rental Income
______________________________________________________________________________
5050.69 A. AFDC, AABD, FMA, and MAABD
1. Income received by the assistance unit from renting property to someone else is treated as:
a. earned self-employment income under the AFDC and AABD programs;
b. unearned self-employment income under the Medicaid programs unless the income is derived from a business enterprise.
2. The total self-employment income earned each month is reduced by the following self-employment deductions when they are incurred:
a. labor (wages paid to an employee or work contracted out);
b. interest paid to purchase income producing property;
c. insurance premiums;
d. taxes, assessments, and utilities paid on income producing property;
e. service and repair of business equipment and property;
f. rental of business equipment and property;
g. advertisement;
h. licenses and permits;
i. legal or professional fees;
j. business supplies.
3. When the rental property is:
a. part of the home-occupied property of the assistance unit, only the expenses associated with the rented portion are considered as a deduction;
CONNECTICUT DEPARTMENT OF INCOME MAINTENANCE
UNIFORM POLICY MANUAL
______________________________________________________________________________
Date: 1-1-88 Transmittal: UP-88-21 5050.69 page 2
______________________________________________________________________________
Section: Type:
Treatment of Income POLICY
______________________________________________________________________________
Chapter: Program: AFDC
Treatment of Specific Types AABD
_______________________________________________________________ MA
Subject:
Rental Income
______________________________________________________________________________
5050.69 A. 3. AFDC, AABD, FMA and MAABD (continued)
b. not part of home-occupied property, the expenses are considered in total;
4. The gross earned income which remains after consideration of self-employment expenses is reduced by all appropriate deductions and disregards;
5. The remaining amount of money is applied income.
B. Food Stamps
1. Income received from property rental is considered to be self-employment income and is:
a. annualized over a 12 month period if it represents the unit's annual income; or
b. averaged over the number of months it is intended to cover if less than 12 months.
2. The total self-employment income is reduced by the following expenses of self-employment:
a. identifiable costs of labor;
b. interest paid to purchase the income producing property;
c. insurance premiums paid on the property;
d. taxes paid on income-producing property.
3. When the rental property is:
a. part of the home-occupied property of the assistance unit, the deductions for self-employment expenses are prorated so that only the expenses associated with the rented portion are considered a deduction;
b. not part of home-occupied property, the expenses are considered in total.
CONNECTICUT DEPARTMENT OF INCOME MAINTENANCE
UNIFORM POLICY MANUAL
______________________________________________________________________________
Date: 1-1-88 Transmittal: UP-88-21 5050.69 page 3
______________________________________________________________________________
Section: Type:
Treatment of Income POLICY
______________________________________________________________________________
Chapter: Program: AFDC
Treatment of Specific Types AABD
_______________________________________________________________ MA
Subject:
Rental Income
______________________________________________________________________________
5050.69 B. Food Stamps (continued)
4. The remaining gross amount is treated as:
a. earned income if an average of 20 or more hours per week is spent by an assistance unit member in maintaining the property; or
b. unearned income if an average of less than 20 hours a week is spent in maintaining the property.
5. When the remaining gross monthly amount is treated as:
a. earned income, it is added to all other earned income and subjected to the deduction for personal employment expenses; or
b. unearned income, the entire gross is counted.
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