Rental Property Is Not Part of the Homestead
Figure net rental income by subtracting the actual cost of doing business from the actual gross rental income.
Rental expenses include:
- principal and interest payments,
- repairs, and
paid by the landlord.
Multi-unit Property Includes Homestead
- Base the prorated share on the number of rental units in the building.
- Figure net rental income by allowing as rental expenses a prorated share of:
Single Family Unit
When the FS unit rents out a portion of its dwelling and expenses cannot be separately identified:
- Figure the rental expenses by:
- Use actual utility expenses. Do not use the Air Conditioning/Heating Standard to figure business expenses.
NOTE: Allow the Air Conditioning/Heating Standard as a shelter expense when figuring the FS unit's shelter costs deduction.
- Figure net rental income by subtracting rental expenses from gross rental income received for the budget month.