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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI INCOME SOURCES 07/19 CHAPTER I, PAGE 51

43.2. Income Treatment 43.2.1. Bona Fide Loan Proceeds of a bona fide loan are not income to the borrower because of the borrower's obligation to repay. 43.2.2. Loan Not Bona Fide If a loan is not bona fide, the proceeds are unearned income in the month received and are subject to the unearned and general income exclusions. 43.2.3. Interest On A Loan Interest received on money loaned is income whether the loan is bona fide or not and is subject to the general income disregards. 43.3. Buying on Credit Items bought on credit are not income because they are treated as though the individual were borrowing money to pay for the item. 43.4. Verification If there is a written agreement between the parties, obtain a copy of the agreement. If there is no written agreement, obtain signed statements from the borrower and the lender. 43.4.1. Forms To document informal loans, you may use two locally reproducible forms. • The Statement of Funds You Provided to Another form is a questionnaire that the lender completes. Send the form and a cover letter that explains why the information is needed to the lender for completion. • The Statement of Funds You Received form is a form that the borrower completes. Send a cover letter and the form to the borrower for completion. Use the back of the forms if you need more room to record information.

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Page 60

Official source

DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI INCOME SOURCES 07/19 CHAPTER I, PAGE 51

43.2. Income Treatment 43.2.1. Bona Fide Loan Proceeds of a bona fide loan are not income to the borrower because of the borrower's obligation to repay. 43.2.2. Loan Not Bona Fide If a loan is not bona fide, the proceeds are unearned income in the month received and are subject to the unearned and general income exclusions. 43.2.3. Interest On A Loan Interest received on money loaned is income whether the loan is bona fide or not and is subject to the general income disregards. 43.3. Buying on Credit Items bought on credit are not income because they are treated as though the individual were borrowing money to pay for the item. 43.4. Verification If there is a written agreement between the parties, obtain a copy of the agreement. If there is no written agreement, obtain signed statements from the borrower and the lender. 43.4.1. Forms To document informal loans, you may use two locally reproducible forms. • The Statement of Funds You Provided to Another form is a questionnaire that the lender completes. Send the form and a cover letter that explains why the information is needed to the lender for completion. • The Statement of Funds You Received form is a form that the borrower completes. Send a cover letter and the form to the borrower for completion. Use the back of the forms if you need more room to record information.