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a. For classifications N, Q, B, or E or if the case is MWD or QI-2, begin excluding $6,000 equity on the first day of the month following the month contract or agreement is signed/made. b. For classification M, begin excluding $6,000 equity on the day that the contract or agreement is signed/made. 4. If there is no contract or prior agreement, the asset is income-producing on the day that the first payment is paid. a. For classifications N, Q, B, or E or if the case is MWD or QI-2, begin excluding $6,000 equity on the first day of the month following the month the first payment is made. b. For classification M, begin excluding $6,000 equity on the day that the first payment is made. EXAMPLE: Applicant applies in October for September retro and on-going coverage. At the intake interview, he learns that he has equity in real property which causes resource ineligibility, but that it can be excluded if rented. He states his brother has been hunting on the property in the retro period, but he has not been paid and there was no prior agreement to rent the property. The property cannot be excluded as income-producing until the day the payment is paid or contract signed for Medically Needy and until the first day of the following month if classified N, Q, B, or E, or if the case is MWD or QI-2. 5. Different Pieces of Land a. If the individual owns different pieces of property, each piece of property must meet the 6% test to be excluded as income producing. b. The equity of all pieces of property that meet the 6% test is combined when applying the $6,000 exclusion. c. Different parcels of contiguous property are treated as separate pieces of property. Contact the tax office to verify if property is divided into parcels. (1) Each piece of land identified by the tax office as a separate parcel is treated as a separate piece of property. It must produce net income which is at least 6% of its equity. (2) The tax office may list a piece of property as one parcel even if separate values are shown for portions of the property such as woodland and farmland. The separate portions do not have to meet the 6% requirement, but the entire parcel must. (3) The entire parcel does not have to be rented, however, the total income for the parcel must meet the 6% requirement. 61