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Minnesota Department of Human Services Child Care Assistance Program (CCAP) Policy Manual
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6.15.9 Annualizing Rental Property Income

ISSUE DATE: 04/2016

For information on annualization of income, see Chapter 6.15 (Annualizing Income).

Treat income from the rental property as earned income when the owner spends an average of at least 20 hours or more a week on maintaining or managing the rental property. Treat the income as unearned when the owner spends an average of less than 20 hours a week on maintaining the rental property.

Deduct the following expenses from gross rental receipts:

Real estate taxes.

Insurance.

Utilities.

Interest on principal payments.

Annual expenses less than or equal to 2% of the estimated market value on the county tax assessment form for upkeep and repairs.

When the CCAP family lives on the rental property, divide the above expenses by the number of units to determine the expense per unit, do not deduct expenses for units occupied by CCAP family members.

MEC2 will annualize the rental income based on the individual income components supported by the verification documents.

LEGAL AUTHORITY

Minnesota Rules 3400.0170
Minnesota Statutes 119B.011

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