Mr. Fiori, an eligible individual, lives with his ineligible spouse in a home they
own. His wife operates a beauty salon in one of the rooms in the home. In December
1994, Mr. Fiori's brother 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
Mrs. Fiori'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).