Income Producing Property

Excludable income producing property comes in 2 basic varieties:  business property and all other property.  Keep in mind that income produced constitutes countable income.

Business property can be excluded regardless of value and net income so long as part of an ongoing business.  The fact that a business may not produce net income in a given year does not affect the exclusion.  Thus the assets of a small janitorial company that owns equipment and a vehicle may be excluded even if presently operated at loss.

Other Property can be excluded IF the property produces 6% net return on equity annually AND has an equity value of less than $6,000.  Thus otherwise countable assets with an equity value of less than $6,000 could be excluded by renting it for an amount equal to 6% of net value.