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 Cash Remaining from an Assistance Check or Other Budgeted Monthly Income of the December 1973 Eligibility Requirements manual.