Deduct any of the following overhead expenses for income-producing property:
- Verifiable cost of ownership, including mortgage or contract payments, taxes and insurance.
- Any expense relating to the cost of renting property.EXAMPLE: Ms. Jones, an SNC participant, receives rent for her home at $265 per month. The eligibility specialist verifies that Ms. Jones pays $780 a year for taxes on the property, and also pays $420 a year for insurance on the property. Her monthly expense of producing income is $100 [($780 + $420) per year / 12 months = $1200/12 = $100).$265.00 Income
-$100.00 Less verified expenses of producing income
$165.00 Countable income to be subtracted from basic nursing facility charge.
- Any of the following expenses relating to the cost of farming property: Cost of feed, seed, fertilizers, tools, equipment repair and replacement, labor, cost of operation of farm machinery, shipping costs, custom work, and land rental.NOTE: To determine the gross cash income received from farming, refer to the procedures outlined in Section 1025.015.01 of the December 1973 Eligibility Requirements manual.