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Income from Property
[EAS 44-113.1]
Net Income from property is determined by deducting from gross income all normal expenses incident to its receipt. Refer to Self-Employment.
Rental of Real Property
To determine the net income from the rental of real property, the EW must deduct the following expenses from the gross income received:
- Taxes and assessments
- Interest payments (do not deduct principal payments)
- Insurance
- Utilities
- Upkeep and major repairs (Use the amount actually spent each month, or 15% of the gross monthly rental plus $4.17 a month.)
- Water cost for crops
- Fertilizer, seed, insecticides, pruning, cultivation and harvesting of crops
- Rental of equipment for crops
- Wages related to crops
- Losses on crops from the previous period
- Other necessary expenses related to crops
Prorate the annual expenses such as taxes, assessments, etc., according to the intervals at which the gross income was received. If other expenses cannot be identified with a particular period, determine the method which assures that the expenses are allocated as closely as possible to the period of crop income, and that on a continuing basis all necessary expenses are deducted from the gross income.
Sale of Livestock
Proceeds from the sale of livestock (i.e., that portion which represents a capital gain) is gross income. Deduct expenses related to raising livestock (such as feed, pasture rent, prorated personal property tax) in computing the net income.
Since such income is usually received at intervals of more than one month, the same principles that apply to determining the periods of expense for the sale of crops, apply to the sale of livestock.
Note: Proceeds from the sale of an entire holding of livestock are not income but conversion of property.
Rental of Personal Property
To determine the net income from the rental of personal property (i.e., trucks, equipment, etc.), the EW must deduct all expenses necessary to maintain and keep up repairs.
Note: These deductions may be verified by viewing receipts for expenditures.
Related Topics
Social Security, Railroad Retirement and Other Pensions
Social Security Benefits for Children
Social Security Benefits of a Minor Parent
Disability Benefits Other than Disability Based Income
Unemployment Insurance Benefits (UIB)