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TITLE 16 HEALTH AND SAFETY DELAWARE ADMINISTRATIVE CODE 7 This exclusion does not apply to any income received on an infrequent or irregular basis if the total of such income exceeds the amounts described above ($10 and $20). We exclude all of the infrequent or irregular income (when it meets the definition of infrequent or irregular income) or none of it (when it exceeds the limits). 20200.9 Relationship of Income to Resources Generally, anything received in a month, from any source, is income to an individual if it meets the definition of available income - Section 20200.1 Anything the individual owned prior to the month under evaluation, is subject to the resource rules. An item received in the current month is income for the current month only. It becomes a resource the following month. 20210 Types of Income 20210.1 Interest Income Interest income may be excluded if it meets the definition and limits of infrequent or irregular income. It is included in patient pay amount calculation. 20210.2 Rental Income Rental income is paid as compensation for the use of real or personal property. Rental deposits used to pay rental expenses become income at the point of use. Rental income is unearned income unless it is earned income from self employment (a real estate broker, or anyone in the business of renting properties). Therefore, rental payments received by those individuals would be considered earned income. 20210.3 Net Rental income Gross rental receipts less allowable expenses paid in the same taxable year. The net amount is unearned income. Allowable expenses include but are not limited to: property taxes interest payments on mortgage incidental repairs advertising for tenants landscaping/lawn maintenance/snow removal utilities 20210.3.1 Nondeductible Expenses These include the principal portion of a mortgage payment and capital expenditures. A capital expenditure is an expense for an addition or increase in the value of property which is subject to depreciation. For allowable income expenses (e.g., whether it is an incidental repair or a capital expenditure) refer to IRS Publication 527 or call the IRS. 20210.3.2 Net Rental Computation Subtract deductible expenses paid in a month from gross rent received in the same month. If deductible expenses exceed gross rent in a month, subtract the excess expenses from the next month's gross rent and continue doing this as necessary until the end of the tax year in which the expenses are paid. Do not carry excess expenses over to other tax years nor use them to offset other income. The individual's most recent Federal tax return including schedules will help identify past expenses and estimate future rental income. Estimate net rental income for the next 12 months deducting only predictable expenses (utilities, interest, payments, taxes, etc). Divide net rental income equally among joint owners. If the gross rent is split between two joint owners before expenses are paid, deduct expenses paid by the applicant/recipient from their portion of the gross rent. 20210.3.3 Room Rentals For rooms rented out in an individual's single residence, prorate allowable expenses based on the number of rooms designated for rent compared to the number of rooms in the house. Do not count bathrooms as rooms in the house. Count basements and attics in the number of rooms only if they have been converted to living spaces (i.e., recreation rooms). For example, a Waiver client rents out a room in his house to his cousin. The house has 6 rooms excluding the bathroom. The allowable expenses (mortgage interest, utilities, etc.) are for the whole house. Only 1/6 of the allowable expenses is deducted from the gross rent. 20210.4 Royalties