If the income of the owner or the combined income
of the owners of the property for the income tax year immediately
preceding the date of making application for the exemption exceeds
$26,900. "Income tax year" shall mean the twelve-month period for
which the owner or owners filed a federal personal income tax return
or, if no return is filed, the calendar year. Where title is vested
in either the husband or the wife, their combined income may not exceed
such sum, except where the husband or wife, or ex-husband or ex-wife,
is absent from the property as provided in Subsection 5(a) of § 459-c
of the Real Property Tax Law, then only the income of the spouse or
ex-spouse residing on the property shall be considered and may not
exceed such sum. Such income shall include social security and retirement
benefits, interest, dividends, net rental income, salary or earnings
and income from self-employment and total gain from the sale or exchange
of a capital asset, which may be offset by a loss from the sale or
exchange or a capital asset in the same income tax year, but shall
not include a return of capital, gifts, inheritances, or monies earned
through employment in the federal foster grandparent program. In computing
net rental income and net income from self-employment, no depreciation
deduction shall be allowed for the exhaustion, wear and tear of real
or personal property held for the production of income.
