Corporation and Partnerships 400-28-65-10-37

(Revised 4/1/12 ML #3327)

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IM 5192

Countable income from a business entity (e.g. a corporation or partnership) that employs anyone whose income is used to determine eligibility is established as follows:

• If the applicant or recipient and other members of the Child Care Assistance Unit own the controlling interest in the business entity, calculate income using the self-employment rules described in 400-28-65-10-35. If the applicant or recipient and other members of the Child Care Assistance Unit own less than a controlling interest, but more than a nominal interest in the business:

• From the business entity’s gross income, subtract any cost of goods for resale, repair, or replacement, CRP payments and patronage or cooperative dividends, and subtract any wages, salaries, or guarantees (but not draws), paid to actively engaged owners to arrive at the business entity’s adjusted gross income; and
• From the adjusted gross income, establish the applicant or recipient’s income share based on the Child Care Assistance Unit's proportionate share of ownership in the business entity; and
• Add any wages, salary, or guarantee paid to the applicant or recipient to the applicant or recipient’s income share; and
• Apply the self-employment income disregards described in 400-28-65-10-35 and
• Based on the applicant's or recipient's proportionate share of ownership in the business entity, establish the individual's share of the CRP payments and patronage or cooperative dividends as unearned income; or

If the applicant or recipient and other members of the Child Care Assistance Unit, in combination, own a nominal interest in the business entity, and are not able to influence the nature or extent of employment by that business entity, the individual's earned income as an employee of that business entity, plus any unearned income gained from ownership of the interest in the business entity.