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2875.05.00 RENTAL INCOME

Rental income is any payment for using real or personal property. Examples of rent include payments for the use of: • land; • buildings; • an apartment, room, or house; or • machinery or equipment. 2875.05.05 RENTAL INCOME (S)

If an individual spends less than 20 hours per week actively managing the rental property as a business, the net rent income (gross income minus expenses) is included as unearned income. If an individual spends 20 or more hours per week actively managing the rental property, the net rent income is included as earned income. Income from roomers/boarders is always earned income, regardless of time spent managing. Refer to Section 2810.30.00 2875.05.10 RENTAL INCOME (C)

Income received from the rental of real estate is considered earned income if the arrangement requires participation by the assistance group member in managing the property. If the property is managed by someone else, the income received from the rental of the real estate is unearned income. Refer to Section 2810.30.00 2875.10.00 INCOME FROM CONTRACT SALES

Income from land contract sales is paid in installments. The following sections discuss the treatment of payments from contract sales. 2875.10.05 INCOME FROM CONTRACT SALES (S)

Income received in installments from the sale of a home is included as unearned income when it exceeds expenses.

Income from property sales is handled the same as self-employment income in that expenses may be deducted from the cost of producing the income. Typical expenses that may be deducted from the income include the interest portion of any mortgage still owed, taxes, insurance, or broker fees.

If the income derived is from sale of business equipment or property connected with the self- employment enterprise, then the total gain from sale of capital goods or equipment related to the business is considered earned income from self-employment. Appropriate deductions as above may be allowed.