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HOWEVER!
what I’d be more concerned about is how you & hubs are reporting the $8,220.00 a year for your own taxes. Doing rental properties has it s own set of tax filings, depreciation done, etc. To me, it would be worthwhile to find a CPA this summer to have a plan on this years taxes, if it has not been done to factor in rental property income.
Did you buy/get the house from your Mom originally? If so, how did this change of ownership happen and when?
Do you know that Medicaid (in most states) only covers LTC and not AL or MC? LTC is deemed as medically necessary by a doctor and usually means one is bedridden or ill/injured and cannot do any ADLs. So, even if your Mom is very elderly, she may not medically qualify for Medicaid until this happens. Then she will need to qualify financially as well.
1. Was the home ever in her name? If so, how long ago, there's a 5 year look back.
2. Is the medicaid for her? If so, and the home was never hers, then I don't believe there should be a problem, but please do get more input regarding this. Sorry I couldn't help more!
Good luck to you all!