Department of Human Services

Food Stamp Online Policy Manual

Treatment of Income Budgeting

Revised:

26.5

SPECIAL INCOME CONSIDERATION

Food Stamp Table of Contents

1240-1-4-.24(2)

(a)   Rental Property

 

Income from rental property always has the cost of doing business deducted. If a member of a household is actively engaged in the management of the property at least an average of 20 hours per week, the 20% earned income deduction may be allowed. The income would be considered earned income. If the 20 hours per week criterion is not met, the net income is considered unearned.

 

(b)   Capital Gains

 

The proceeds from the sale of capital goods or equipment are calculated in the same manner as a capital gain for federal income tax purposes. Even if only 50% of the proceeds from the sale of capital goods or equipment is taxed for federal income tax purposes, the caseworker shall count the full amount of the capital gain as income.

 

(c)    Internal Revenue Service Publications

 

IRS Publications 17, 334 and 533 provide detail on taxing self-employment income. They are available from IRS information offices.

 

Glossary of Terms

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