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Countable. Commercial boarding houses are treated as regular self-employment. Boarding situations that are not in a commercial boarding house may be earned or unearned depending on whether or not the client is materially participating in the business and are treated as follows: • Boarder income includes all payment made directly to the household, including payments for meals and shelter. Countable income is determined by subtracting the household’s costs of providing room and meals from the total boarder income received. Use one of the following methods to determine allowable expenses: 1. Actual documented expenses for room and meals, and pro rata share of food, utilities, etc.; or 2. Amount allowed for vendor/in-kind food and/or shelter (see ‘Vendor Payments’ in CMA 501-1 Unearned Income); or 3. ABD: One-third value reduction provision (see ‘Vendor Payments’ in CMA 501-1 Unearned Income). SELF-EMPLOYMENT LOSSES: ACA: Any loss reported on Schedule E, Line 32 can be used to offset any other income and decrease MAGI income. ABD and Family Medically Needy: Subtract verified self-employment losses from other self- employment gains. ABD: Self-employment losses can also be deducted from other earned income. BANKRUPTCY: Continue to use the projected monthly self-employment income until the client reports the business will have a substantial change in income and/or expenses. A statement from the bankruptcy trustee can verify the debt reorganization plan. Continue to count the self-employment income even when it’s diverted to a bank or other source. Deductions for trustee or conservator’s fees are not allowed. When equipment or land is repossessed or title is given to the lender, the property is no longer owned by the client; sale of this property is not considered income. A loan that is forgiven or written off is not considered income. Revised Date: April 01, 2023