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

HUD Handbook 4350.3 is the primary reference for calculating income and assets in LIHTC and other affordable housing programs.

Question 2

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

Accepted Answer

Gross receipts minus IRS-allowable business expenses

Answer

Self-employed income is calculated by taking gross receipts and subtracting IRS-allowable ordinary business expenses, not personal taxes or depreciation.

Question 3

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

Accepted Answer

$14,400

Answer

Monthly pension income of $1,200 is annualized by multiplying by 12 months, yielding $14,400 in annual income.

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

Zero income claims require both a signed self-certification from the applicant and supporting third-party verification to be credible.

Question 5

Alimony received by a household member is counted as income:

Accepted Answer

In full as anticipated income regardless of source

Answer

Alimony is counted as anticipated income in full, regardless of whether it is court-ordered or informal.

TCS - Tax Credit Specialist Practice Test

TCS - Tax Credit Specialist Practice Test

TCS Income Calculation and Verification 3