Quiz 12/26/2018: Deductions for Adjusted Income: Part 2

Are the following allowable deductions when determining adjusted income for HUD, RD or the HOME programs? 6. $960 in dependent deductions for two dependent children (ages 15 & 16). 7. $480 dependent deduction for a foster child. 8. $800 in elderly deductions for a household with two members over age 62. 9. Childcare for a 9-year-old foster child that allows a foster mother to work. 10. Childcare that a father pays for his son that lives with his mother. CLICK HERE for answers to this week's quiz

Help! Rent Has Been Charged to Employees in Tax Credit Employee Units.

Question from a Blog Reader "I just started as a new company as Compliance Director. I noticed that we have tax credit units where full-time employees live that are exempt units. We are charging these employees rent. At my past company we did not charge employees rent because we would then have to include them in the applicable fraction and would lose tax credits on those units. How serious is this, and how can i fix it?" Answer Summary: Charging rent for employee units does not risk tax credits and is not a federal noncompliance issue. The prohibition against charging rent is based on outdated information found in Chapter 8 of the 8823 Guide. Since the last version of the Guide was released

Quiz 12/11/2018: Deductions for Adjusted Income

Are the following allowable deductions when determining adjusted income for HUD, RD or the HOME programs? 1. Childcare for a 13 year-old child that allows his mother to go to school. 2. Medical expense for cosmetic surgery. 3. Childcare for a 16 year-old child with disabilities. 4. Medical expense for complications arising from cosmetic surgery. 5. Child care that allows a father to pursue volunteer work. CLICK HERE for answers to this week's quiz

Are Sporadic Car Payments Made for a Household Periodic Income?

Question from a Blog Reader "I have a resident who is receiving monthly help from relatives to pay car payments. The problem is that the help comes from different people at different times. As the payments are coming from different sources every month I think that they may be sporadic, not periodic. Should the payments be counted?" Answer Summary: We think that these payments are periodic receipts and should be counted as income. According to the HUD Handbook 4350.3 5-6 (G)(1) &(3), "owners must count as income any regular contributions and gifts from persons not living in the unit. These sources may include rent and utility payments paid on behalf of the family, and other cash or noncash co

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