Income Calculations

Income Calculations

HUD Releases 2015 Multifamily Tax Subsidy Income Limits

March 31, 2015    

On March 6, HUD released the 2015 income limits, available at According to Revenue Ruling 94-57, you have 45 days to begin using them to certify and recertify low-income households at your tax credit site. This means this year’s income...

IRS Issues New Standard Mileage Rates

December 23, 2014    

The IRS recently issued the 2015 optional standard mileage rates. Starting Jan. 1, 2015, when calculating the deductible costs of operating an automobile, the new rates will be 57.5 cents per mile for business miles driven, 23 cents per mile driven for medical or moving purposes, and 14 cents...

New Passbook Rate to Be Effective Feb. 1, 2015

November 26, 2014    

On Oct. 31, 2014, HUD issued Housing Notice 2014-15, “Passbook Savings Rate Effective February 1, 2015 and Establishing Future Passbook Savings Rates.” The HUD passbook rate is used to impute asset income on households who have $5,000 or more in assets. Currently, the HUD passbook...

How to Treat Trusts When Calculating Household Income

January 30, 2013    


When certifying or recertifying households at your tax credit site, it’s not uncommon to discover that a household member is the creator or beneficiary of a trust. If so, you’ll need to account for the trust when calculating the household’s income. If you don...

HUD Releases 2013 Income Limits

December 21, 2012    

On Dec. 4, HUD released income limits for 2013, but revised the limits after discovering a calculation error. The revised numbers were issued Dec. 11. Under the Housing and Economic Recovery Act of 2008 (HERA), income limits are used to determine qualification levels as well as set maximum...

How to Avoid Common Mistakes When Calculating Annual Income

April 12, 2012    

Annual income is an important factor that influences the eligibility of an applicant for the tax credit program. To become income eligible, an applicant's household gross annual income must be equal to or less than the income limit applicable to your site.

HUD's List of Sources of Income

January 16, 2012    
  1. Wages and salaries. The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services.

  2. Net income from operation of a business or...

HUD Releases Income Limits for 2012

December 15, 2011    

On Dec. 1, HUD released income limits for 2012. Under the Housing and Economic Recovery Act of 2008 (HERA), income limits are used to determine qualification levels as well as set maximum rental rates for projects funded with low-income housing tax credits and projects financed with tax-exempt...

HUD Handbook and LIHTC: Discrepancies Reveal Imperfect Fit

May 6, 2009    

When determining an applicant's eligibility, tax credit managers often can be thrown by HUD Section 8 regulations for income and asset identification that seem to conflict with certain provisions in the tax credit regulations. Jo Ikelheimer, research & development consultant and...

Counting an Item as Income or an Asset

February 1, 2009    

If you own or manage a tax credit site, there may have been times when you had trouble deciding whether to count an investment or retirement account as income or an asset. That's probably because of the inconsistencies that appear in HUD's Occupancy Handbook 4350.3, REV-1, CHG-2,...

Calculating Annual Income Based on Year-to-Date Income

February 1, 2008    

The recently issued Change 2 to HUD Handbook 4350.3 does not address how you, as an owner or manager, calculate annual income by using year-to-date (YTD) income.