2142. Valuation of In-kind Support and Maintenance

2142.1 How is in-kind support and maintenance valued?

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.

2142.2 What is the one-third reduction rule?

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.

2142.3 When does the one-third reduction rule apply?

The one-third reduction rule applies if you:

1. Live in another person's household throughout a calendar month, except for temporary absences (see §2145); and

2. Receive both food and shelter from within the household. (See §2143 and §2147 for additional information on the one-third reduction rule.)

2142.4 What is the presumed maximum value rule?

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.)

2142.5 When does the presumed maximum value rule apply?

This rule applies in situations when you receive in-kind support and maintenance and the one-third reduction rule does not apply.