There are two rules we use for placing a value on in-kind support and maintenance: the “one-third reduction rule (VTR)” and the “presumed maximum value rule (PMV).” These rules are explained in the subsections below.
Under the one-third reduction rule, an amount equal to one-third of the applicable FBR is considered the value of the in-kind support and maintenance.
Note: The $20 general income exclusion does not apply to the income counted under the one-third reduction rule.
The one-third reduction rule applies if you:
Under the presumed maximum value rule, we presume that the value of support and maintenance does not exceed a certain maximum amount (see §2144). However, if you can show that the actual value is lower than the presumed maximum value, we use the lower value to determine your countable income. (See §2147.)
This rule applies in situations when you receive in-kind support and maintenance and the one-third reduction rule does not apply.
Last Revised: Apr. 7, 2003