Fred, an eligible individual, lives with their ineligible spouse in a home they own.
The ineligible spouse operates a beauty salon in one of the rooms in the home. In
December 1994, Mr. Freb's sibling pays a gas bill ($49) for them. The gas bill is
for the whole house (i.e., there is no separate meter for the salon).
The FO develops to determine the converted CMV of the household gas. Schedule C from
the ineligible spouse's 1993 Federal tax return shows an annual business deduction
of $85 for gas. The FO divides the $85 by 12 to get the monthly cost ($7.08) of the
gas for the business. For purposes of determining outside ISM, the converted CMV of
the gas used by the eligible individual's household is $41.92 ($49 minus $7.08).