ADMINISTRATIVE PLAN - San Antonio Housing Authority

EXHIBIT 6-1: ANNUAL INCOME INCLUSIONS24 CFR 5.609(a) Annual income means all amounts,monetary or not, which:(1) Go to, or on behalf of, the family head orspouse (even if temporarily absent) or to anyother family member; or(2) Are anticipated to be received from asource outside the family during the 12-monthperiod following admission or annualreexamination effective date; and(3) Which are not specifically excluded inparagraph (c) of this section.(4) Annual income also means amountsderived (during the 12-month period) fromassets to which any member of the family hasaccess.(b) Annual income includes, but is not limitedto:(1) The full amount, before any payrolldeductions, of wages and salaries, overtimepay, commissions, fees, tips and bonuses, andother compensation for personal services;(2) The net income from the operation of abusiness or profession. Expenditures forbusiness expansion or amortization of capitalindebtedness shall not be used as deductions indetermining net income. An allowance fordepreciation of assets used in a business orprofession may be deducted, based on straightlinedepreciation, as provided in InternalRevenue Service regulations. Any withdrawalof cash or assets from the operation of abusiness or profession will be included inincome, except to the extent the withdrawal isreimbursement of cash or assets invested in theoperation by the family;(3) Interest, dividends, and other net income ofany kind from real or personal property.Expenditures for amortization of capitalindebtedness shall not be used as deductions indetermining net income. An allowance fordepreciation is permitted only as authorized inparagraph (b)(2) of this section. Anywithdrawal of cash or assets from aninvestment will be included in income, exceptto the extent the withdrawal is reimbursementof cash or assets invested by the family. Wherethe family has net family assets in excess of$5,000, annual income shall include thegreater of the actual income derived from allnet family assets or a percentage of the valueof such assets based on the current passbooksavings rate, as determined by HUD;(4) The full amount of periodic amountsreceived from Social Security, annuities,insurance policies, retirement funds, pensions,disability or death benefits, and other similartypes of periodic receipts, including a lumpsumamount or prospective monthly amountsfor the delayed start of a periodic amount(except as provided in paragraph (c)(14) ofthis section);(5) Payments in lieu of earnings, such asunemployment and disability compensation,worker's compensation and severance pay(except as provided in paragraph (c)(3) of thissection);© Copyright 2008 Nan McKay & Associates, Inc. Page 6-44Revised/Approved 04/08/10 (Eff: 07/01/10)Unlimited copies may be made for internal use.