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Chapter: 1800 Income Program: FS 9 1810.0304.02 Income from Boarders (FS) After determining income received from the boarder(s), the eligibility specialist must exclude that portion of the boarder payment which is a cost of doing business. The cost of doing business, not to exceed the payment from the boarder(s) for lodging and meals, includes either of the following:

1. The maximum monthly food stamp benefit for an assistance group size equal to the number of boarders. For example, there are three boarders, and each is a separate assistance group. The exclusion is the maximum benefit for a three person assistance group and not three times the maximum benefit for one individual.

2. The actual documented cost of providing room and meals, if the actual costs exceed the maximum benefit for an assistance group size equal to the number of boarders. If actual costs are used, only separate and identifiable costs of providing room and board to the boarder(s) are excluded. The amount remaining would be considered earned income. 1810.0304.03 Income/Adjustments - Individuals Provided Meals Only (FS) An individual who only purchases meals does not meet the definition of a boarder. This individual is considered a diner. The assistance group furnishing the meals may be allowed the cost of doing business, not to exceed the payment received for meals. This income, less the cost of doing business, is considered earned income. The cost of doing business would be the actual costs of providing meals. If this information is not available, the eligibility specialist may exclude from the payment for meals the maximum allotment for an assistance group size equal to the number of diners. 1810.0304.04 Individuals Provided Rooms Only (FS) The individual for whom the assistance group furnishes lodging only is called a roomer and is not subject to the boarder provisions. Any payment made to the assistance group for lodging is counted as earned income. Costs of doing business, such as charges for cleaning linens and providing soap may be excluded if receipts are provided. Since no meals are provided, no deduction may be allowed for food. 1810.0305 Income from a Sales Contract as Self-Employment (FS) In a sales contract, the assistance group receives a monthly payment for the sale of property such as real estate, equipment, vehicle, etc. and is also required to make a monthly installment payment on that property. The monthly payment received would be considered unearned income; however, the cost of doing business may also be deducted since it is considered a self- employment enterprise. Typical expenses that may be deducted from the income include taxes, insurance, broker fees, or interest on the regular mortgage.

Example: A woman sold her house and receives a monthly payment of $390 from the buyer, but the original mortgage is still in her name. She is required to pay $187 to a bank for the original mortgage payment. The seller of the house would have a monthly unearned investment income of $390 minus that portion of the monthly mortgage payment that pays for interest on the original cost of the house. Further costs of doing business that may also be subtracted are payments for taxes and insurance or broker fees. 1810.0308 Child Care In Own Home (FS) Assistance groups deriving income from child care in their own home may elect one of the following methods of determining the cost of meals provided to the children:

1. the actual documented cost of meals, 2. a standard per day amount based on estimated per meal costs, or