5332 Income Producing Property

Property which produces income consistent with its fair market value is exempt in full, even if only used on a seasonal basis. This would include property such as land or other property which is rented and not actively managed per 6313(1) , timber or mineral rights, and farm property where the individual is no longer actively involved in the management of the farm. Generally, income from such property would be considered as unearned income.

When it is necessary to determine if the property is producing income consistent with its fair market value, workers may contact local realtors, tax assessors, the Small Business Administration, or other similar sources to determine the prevailing rate of return (e.g., square foot, acreage, rental, etc.) for similar usage of real property in the area. If it is determined that the property is not producing income consistent with its fair market value (for instance, the property is being leased for a token payment), such property would be counted as a resource. However, if the property was leased for a return that was comparable to other property in the area leased for similar purposes, it would be considered as producing income consistent with its fair market value and would not be considered a resource.

If the property is not in current use, it may be exempted under this provision as long as the individual expects its use to resume within one year of the date of last use. If the individual does not expect use of the property to resume, the property shall be counted in full.