Example 2: A boarder pays the telephone bill for the household directly to the phone company. The amount of the payment is not counted as income to the household.

105.4 Allowable Costs of Doing Business

Exclude the portion of the boarder payment that is a cost-to-do business when determining the income received from boarders.

The amount allowed as the cost-to-do business is 50% of the proprietor’s gross monthly receipts received from boarders.

105.5 Computing Income