Income Calculations

Income Calculations

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.