TCS Income Calculation and Verification 3

Question 1

Which IRS publication provides guidance on calculating income and assets for LIHTC properties?

Accepted Answer

HUD Handbook 4350.3

Answer

IRS Publication 527

Answer

IRS Revenue Ruling 94-57

Answer

IRS Notice 88-91

Question 2

A self-employed applicant's income is calculated using:

Accepted Answer

Gross receipts minus IRS-allowable business expenses

Answer

Only net profit after taxes

Answer

Total deposits in the business bank account

Answer

An estimate provided by the applicant

Question 3

A pension income of $1,200 per month means the annual income counted is:

Accepted Answer

$14,400

Answer

$12,000

Answer

$10,800

Answer

$1,200

Question 4

What document is used to verify zero income for an applicant claiming no income?

Accepted Answer

Third-party verification and a signed self-certification

Answer

A notarized zero-income affidavit signed by the applicant

Answer

An employer termination letter alone

Answer

Bank statements showing a zero balance only

Question 5

Alimony received by a household member is counted as income:

Accepted Answer

In full as anticipated income regardless of source

Answer

Only if it is court-ordered

Answer

Only after it has been received for 12 consecutive months

Answer

Only if it exceeds $500 per month

Question 6

Which income is specifically excluded from LIHTC income calculations?

Accepted Answer

Lump-sum inheritances

Answer

Wages from part-time employment

Answer

Recurring gifts from family members

Answer

Disability payments from an employer