TN 22 (07-90)
SI 01130.502 Essential Property Excluded up to $6,000 Equity Regardless of Rate of Return
A. Policy principles
1. The Exclusion
Up to $6,000 of the equity value of nonbusiness property used to produce goods or services essential to daily activities is excluded from resources. There is no requirement that the property produce a certain rate of return. The property must be in current use or, if it is not in use for reasons beyond the individual's control, there must be a reasonable expectation that the required use will resume.
2. Equity Exceeds $6,000
Any portion of the property's equity value in excess of $6,000 is not excluded under this provision.
3. Nonbusiness Property Producing Essential Goods Or Services
Nonbusiness property essential to self-support can be real or personal property. It produces goods or services essential to daily activities if, for example, it is used to:
NOTE: While this category of property may encompass a vehicle used solely in a nonbusiness self-support activity (e.g.,a garden tractor, or a boat used for subsistence fishing), it does not include any vehicle that qualifies as an automobile (see SI 01130.200 A.).
B. Development and documentation — initial claims and posteligibility
1. Individual's Statement
When an individual alleges owning property that he or she uses to produce goods or services necessary for daily activities, obtain his or her statement giving:
Absent evidence to the contrary, accept the statement.
2. Supporting Evidence Of Value
a. Real Property
Determine the CMV and, if necessary,the EV of real property in accordance with SI 01140.100.
b. Personal Property
Have the individual obtain a CMV estimate from a knowledgeable source. The estimate must:
clearly identify the source;
contain a description of the item whose CMV is being estimated; and
show the basis for the estimate.
NOTE: If a knowledgeable source provides a value range, use the lower edge of the range.
3. Current Use Criterion
If the property is not in current use,see SI 01130.504 for development.