XX Rental Property Income
 
(2/01/14 - 03/31/14)
Rental income received by the participant homeowner is countable as unearned income when the participant does not manage the property in order to receive the income.
 
Key the RE Unearned Income Code in the INC TYP field and key the appropriate Sub Type code in the SUB TYPE field on UNIN.
 
When the participant manages the property, see Self-Employment Rental Income.
 
NA EXCEPTION
When the participant spends an average of less than 20 hours per week managing the property, deduct the standard 40% self-employment deduction from the rental income when there is verification that at least one allowable business expense exists. (See Example Rental – Unearned Income)
Manually deduct 40% from the unearned rental income. Key the RE FS Unearned Income Code in the INC TYP field on UNIN.
When the participant spends an average of at least 20 hours per week managing the property, see Self-Employment Rental Income.