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1. Determine the equity value of the income producing property based on the CMV (tax value) of the property. 2. Regardless of the amount of income produced, subtract $6,000 from the equity value. Add this amount to the value of other countable resources. a. If the total is over the resource limit, do not determine how much income the property produces. Stop here. b. If the total does not exceed the resource limit, proceed to determine if the property produces a net annual income of at least 6% of the property’s equity. 3. Determine the equity value of the property based on the present use value. (If no present use value is assigned, use the tax value.) Multiply that equity value by .06 to determine the 6% net annual income the property must produce. 4. Determine the amount of net annual income produced by the property. 5. Compare the 6% figure to the net annual income. If the net annual income produced by the property is equal to or greater than 6% of the equity value, the property is income producing, exclude $6,000 of the property’s equity. B. Overview of Steps When There is More Than One Piece of Income Producing Property If the individual owns more than one piece of income producing property, the $6,000 exclusion applies to the total equity of all property that produces a net annual income of 6% of its equity. 1. Total the equity value of all properties producing income, and follow steps in IX.A.2.a & b. 2. If the property’s equity value after deducting $6,000 and the value of other countable resources does not exceed the resource limit (IX.A.2.b.) apply the 6% income requirement to each piece of income producing property separately. Each separate property must meet the 6% income test for any of its equity to be excluded. Follow steps in IX.A.3. – 5 to determine if a piece of property meets the 6% income test. 3. Total the equity of all pieces of property that meet the 6% income test, and deduct $6,000. The equity over $6,000 is a countable resource, unless otherwise excluded. 54