5) Property that produces goods or services for the customer’s needs

A farmer has a 4-acre lot 5 miles from his house. He raises 3 cows and a garden every year. He sells two of the cows for $700 each and butchers the remaining cow for personal use. He sells the vegetables once he fills his personal freezers. He makes $1,200 from selling vegetables. The earnings are reviewed as self-employment income. Since this property is used to produce goods or services for the daily needs of the customer, $6,000 is deducted from the equity value of the property.