Supplemental Nursing Care (SNC) Manual

0610.015.00 Overhead Expense of Producing Income

IM-#30 April 4, 2008

Deduct any of the following overhead expenses for income-producing property:

  1. Verifiable cost of ownership, including mortgage or contract payments, taxes and insurance.
  2. 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.
  3. 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.