461-145-0088 Effective 01/01/10 - Technical Amendment
Corporations and Business Entities; Income and Resources
- The value of stocks or other ownership interest in a corporation is a resource.
- Assets of the corporation essential to the employment of a client are excluded. For instance, if the corporation owns equipment used by the client to produce income for the corporation, the equipment is an excluded resource. If a client must own stock in the corporation as a condition of working for the corporation, the stock is an excluded resource.
- Except as provided in OAR 461-140-0040(2) and section (4) of this rule, income of a corporation is not income of a client with an ownership interest in the corporation until the income is distributed to the client.
- In the OHP, OSIP, OSIPM, QMB, and SNAP programs:
- An expenditure by a business entity or corporation that benefits a principal -- such as a car or housing payment -- is considered available when the expenditure is made.
- For purposes of this rule, a principal is a person with significant authority in a business entity or corporation, including a sole proprietor, a self-employed person (see OAR 461-145-0910), a partner in a partnership, a member or manager of a limited liability company, and an officer or principal stockholder of a closely held corporation.
- See OAR 461-145-0130, 461-145-0280, and 461-145-0470 for the treatment of earned in-kind income.
- In the SNAP program:
- Income from business entities and corporations is treated as follows:
- If a client is actively working in a corporation, the income is treated as earned income.
- If a client is actively working in an unincorporated business entity, refer to OAR 461-145-0910 to determine if the income is treated as earned or as self-employment.
- If a client is no longer actively working to produce the income, the income is treated as unearned.
- Income from a limited liability company is treated as follows:
- If a client is a member or a manager member, the income is treated as self-employment income.
- If a client is a manager but not a member, the income is treated as earned income.
Stat. Auth.: ORS 411.060, 411.816, 412.049, 414.042
Stats. Implemented: ORS 411.060, 411.816, 412.049, 414.042