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• Property taxes • Interest payments • Repairs • Advertising expenses • Lawn care • Insurance premium for property only • Trash removal expenses • Snow removal expenses • Water • Utilities • Other necessary expenses.

The following examples are costs allowed by the Internal Revenue Service but not allowable under MA R and MA Q:

• Depreciation • Insurance to pay off the mortgage in the event of death or disability • Capital expenditures. 3430.00.00 BUDGETING EDUCATIONAL INCOME If an AG member has both exempt and non-exempt income (see Chapter 2860.05.00), allowable educational expenses are deducted from exempt income first. All remaining allowable expenses are then deducted from the non-exempt income. If any non-exempt income remains, it is prorated over the number of months it was intended to cover and counted as unearned income. NOTE: The second step only applies to non-exempt educational income received directly by the student. If the entire amount is received and retained by the school, it is completely excluded from the budgeting process. If the school receives the income directly and refunds any unused portion to the student, only the refunded amount is budgeted as unearned income (after allowable additional educational expenses are deducted). EXAMPLE: Mr. Smith is a graduate student. His verified educational income and expenses are listed below:

Financial Aid Perkins’s loan (exempt income) $3000.00 Kiwanis Scholarship (non-exempt income) $3500.00

Educational Expenses Tuition and Fees $4000.00