Report of Income from Property or Business

Your information as the pension or DIC recipient. Include VA File Number from your benefit award letter.

(legal name, SSN, VA file number)

Common mistakes

• ×Omitting VA File Number - report cannot be attached to your pension file.

For each rental property: (1) Property address; (2) Gross annual rental income received; (3) All allowable operating expenses: mortgage interest (not principal), property taxes, insurance, utilities (if you pay), maintenance and repairs, depreciation if filing Schedule E, management fees. VA calculates NET rental income = gross income minus allowable expenses. Net income counts toward IVAP.

e.g., 456 Oak Ave, Tucson AZ 85701
Gross rent: $14,400/yr
Mortgage interest: $5,200
Property taxes: $1,800
Insurance: $1,200
Repairs: $600
Net income: $5,600/yr

Common mistakes

• ×Including mortgage principal payments as an expense - only the interest portion is deductible.
• ×Not calculating net income - VA counts only net rental income, not gross.
• ×Forgetting to list all operating expenses - every legitimate expense reduces countable income.

Authority

• 38 CFR 3.3 - Eligibility criteria for veterans pension: wartime service, discharge character, income below MAPR, and net worth below threshold.

For any business you operate: type of business, gross annual income, and all ordinary and necessary business expenses (not personal expenses). VA uses net business income (gross minus allowable expenses) as countable income.

e.g., Sole proprietor lawn care; Gross: $8,400/yr; Equipment/supplies: $2,100; Gas: $900; Net: $5,400/yr

Common mistakes

• ×Including personal expenses as business expenses - only legitimate business expenses are deductible.

Sign and date. VA cross-references with IRS Schedule C and E.

(signature/date)

Common mistakes

• ×Reporting gross income without expenses - always report net income.