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Bartering is an exchange of property or services. The fair market value of the services or property being bartered is taxable income to the individual receiving the services or property. Therefore, such income is counted in the calculation of MAGI for purposes of Medicaid eligibility. 2815.20.00 GIFTS AND INHERITANCES (MED 3) Property received as a gift, bequest, or inheritance is not considered taxable income and is not included in the calculation of MAGI for determination of eligibility. If such gifts, bequests, or inheritances produce income (e.g., interest, dividends, rent) later, that income will be considered taxable income. In addition, if such gift, bequest, or inheritance is placed in a trust for the individual and the income is paid or distributed to the individual, such income is taxable and included in the calculation of household income for eligibility determinations. 2815.25.00 GAMBLING WINNINGS (MED 3) Cash winnings and the fair market value of non-cash prizes (e.g., bonds, cars, houses, etc.) because of gambling, lotteries, and raffles are considered taxable income and must be included in the calculation of MAGI for eligibility determinations. Gambling losses can be deducted from income but only up to the amount of the individual’s winnings. 2820.00.00 CANCELED DEBT (MED 3) A debt is any amount of money for which an individual is liable, or which attaches to property owned by an individual. If a debt owed by an individual is canceled or forgiven, the canceled amount is taxable income and must be included in the calculation of household income for purposes of eligibility determinations. However, if the canceled debt is intended as a gift to the individual, it is not taxable income and is not included in the calculation of MAGI for purposes of eligibility determinations. Some examples of canceled debt that are gifts include: • A relative who is not an AG member pays the rent directly to the landlord • Medical payments made by a third party to a medical provider. 2825.00.00 INFREQUENT OR IRREGULAR INCOME (MED 1, 4) Within MED 1, the policy stated in this section applies to MA A, MA B, and MA D.