Definition
Do not confuse imputed rent with amortization payments. Note that imputed rent refers to the value of the house/lot based on its utility while amortization payments refer to the periodic payments made by the family on real property they acquired on installment basis. Hence, if the family owns the house/lot but is still paying for it, the total of payments made for the six-month reference period is to be included in Item (1) purchase/amortization of real property under Section I - Other Disbursements. However, the imputed rent must be entered in G1(d). Computations of rent should be based on prevailing prices in the area.
For free housing enjoyed by employees as part of fringe benefits provided by their employer, the imputed rent must be estimated. For this particular case, place a sharp sign (#) on the line provided after each question for the rent-free lot in Code 4 or the rent-free house and lot in Code 6. (The sharp sign serves as an indicator for free housing derived from employment. Be sure to include this amount as Earnings in Kind in Part III Section A. Salaries and Wages from Employment.
