Clarifying the Definition of Gross Income for Child Support
Fri Aug 12 2022

Effective July 1, 2022, Virginia lawmakers clarified how rental income is treated for parents paying child support. Revised section 20-108.2(C) of the Code of Virginia now states that “gross income” means all income from all sources, and shall include “rental income except as listed below…” The statute goes on to state that, “Gross rental income from any property owned individually, jointly, or by any entity shall be subject to deduction of reasonable expenses; however, the deduction shall not include the cost of acquisition, depreciation, or the principal portion of any mortgage payment. The party claiming any deduction for reasonable business expenses or reasonable expenses for rental property shall have the burden of proof to establish such expenses by a preponderance of the evidence.” Mortgage payments, or other costs of acquisition, are not considered reasonable expenses that can be deducted from any rental income received for the property because these costs increase the owning-parent’s equity in the home, and therefore should not be the basis of decreasing that parent’s child support obligation. The attorneys at Taylor Huguley Powers PLLC can help you determine your child support obligation and assist you with all your family law needs!