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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI INCOME SOURCES 07/19 CHAPTER I, PAGE 70

54.1.4. Nondeductible Expenses Nondeductible expenses include: • Principle portion of a mortgage payment; • Capital expenditures (i.e., an expense for an addition or increase in the value of property which is subject to depreciation for income tax purposes); and • Depreciation or depletion of property. 54.1.5. Proration Of Expenses When only a portion of a property is rented out, it is necessary to determine the portion of the expenses that apply to the rented property. This is done by prorating the expenses as follows. Note: Any expenses strictly related to a particular rental unit are deducted in total from the rent for that unit. Such expenses are not prorated. 54.1.5.1. Multiple Family Residence In a multiple family residence: • If the units in the building are of approximately equal size, prorate allowable expenses based on the number of units designated for rent compared to the total number of units. • If the units are not of approximately equal size, prorate allowable expenses based on the number of rooms in the rental units compared to the total number of rooms in the building. (The rooms do not have to be occupied.) 54.1.5.2. Rooms in Single Residence For rooms in a single residence: • Prorate allowable expenses based on the number of rooms designated for rent compared to the number of rooms in the house. • Do not count bathrooms as rooms in the house.