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I think she can pay you a reasonable amount of room and board, which you could then spend any way you want, but you had better check first what is considered a reasonable amount and make sure you have proper legal contracts in place.
And you should be aware that you probably have to report that money as income.
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No, I don't think so. That could be seen as a gift to you. I would talk to the Medicaid people before doing that.
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Spend down needs to be for their care or their direct needs or their property.

It's your home, your garage, your responsibility to maintain.
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Swamp, your profile says that mom is in a NH, but your post reads mom is living with you & is doing a spend down.
Are there transfer penalty issue$ with mom already existing?
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