Ch 14. DEFINITIONS

For purpose of eligibility admission and occupancy, the definition of annual income shall be Adjusted Gross Income as defined for purposes of reporting under Internal Revenue Service (“IRS”) Form 1040 series for individual Federal annual income tax purposes, which provides that adjusted gross income means gross income minus deductions, including the following:

1. On account of a trade or business carried on by the taxpayer (except for services as an employee) (Paragraph 1006);
2. For trade or business expenses paid or incurred by a qualified performing artist for services in the performing arts as an employee (Paragraph 941 A);
3. Allowed as losses from the sale or exchange of property (Paragraph 1701 et. Seq.);
4. For expenses paid or incurred in connection with the performance of services as an employee under a reimbursement or other expense allowance arrangement with the employer or third party (Paragraph 942). Employee expenses that are not reimbursed under an accountable plan are not deductible from gross income;
5. Attributable to rental or royalty property (Paragraph 1089);
6. For depreciation or depletion allowed to a life tenant of property or to an income beneficiary of property held in trust, or to an heir, legatee, or devisee of an estate (Paragraph 1090);
7. For contributions by self-employed persons to pension, profit sharing, and annuity plans (Paragraph 2113);
8. Allowed for cash payments to individual retirement accounts (IRAs) and deductions allowed for cash payments to retirement savings plans of certain married individuals to cover a non-working spouse (Paragraph 2170 & 2172);
9. For the ordinary income portion of a lump-sum distribution to the extent included in gross income (Paragraph 2153);
10. For interest forfeited to a bank, savings association etc., on premature withdrawals from time savings accounts or deposits (Paragraph 1120);
11. For alimony payments (Paragraph 1008);
12. For the amortization of reforestation expenses (Paragraph 1287);
13. For certain repayments of supplemental unemployment compensation benefits to a trust described in Code Sec. 501(C) (9) or (17), required because of receipt of trade readjustment allowances (Paragraph 1009);
14. For jury duty pay remitted to employer (Paragraph1010);
15. For moving expenses (Paragraph 1073);
16. For the purchase of clean-fuel vehicle and refueling property (Paragraph 1286);
17. For interest on education loans incurred on, before, or after August 5, 1997, with respect to loan interest payment due and paid after December 31, 1997, (Code Sec. 62(a)(17));
18. For contributions to a medical savings account allowed by Code Sec. 220 (Code Sec. 62(a)(16)) See Paragraph 1020; and
19. For expenses paid or incurred by a fee-basis state or local government official for services performed.