$6,000/6 Percent Rule 510-05-100-60

(Revised 6/01 ML #2590)

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If the equity value (EV) is... And the 6 percent annual return (AR) requirement is... Then... $6,000 or less met on the excluded equity (i.e., equity is $5,000; AR must be at least $300) exclude the entire EV of the property. $6,000 or less not met on the excluded equity (i.e., equity is $5,000; AR is less than $300) count the entire EV of the property toward the asset limit. greater than $6,000 met on the amount of excluded equity (i.e., EV is $8,000; AR must be at least $360) count the excess EV ($2,000) toward the asset limit. greater than $6,000 not met on the excluded equity (i.e., EV is $8,000; excluded equity is $6,000; AR must be at least $360 count the entire EV (i.e., $8,000 toward the asset limit. $6,000 or less on the total of more than one income-producing property met on the EV of each property exclude the total EV’s of the properties. $6,000 or less on the total of more than one income-producing property not met on the EV of one or more of the properties count the entire value of any property not meeting the 6 percent AR toward the asset limit. greater than $6,000 on the total EV’s of more than one income-producing property met on the EV of each property total the EV’s and count the amount in excess of $6,000 toward the asset limit. greater than $6,000 on the total EV’s of more than one income-producing property not met on the EV of one or more of the properties the entire EV of any property not meeting the 6 percent AR is counted toward the asset limit as well as any excess over $6,000.

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$6,000/6 Percent Rule 510-05-100-60

Official source

(Revised 6/01 ML #2590)

View Archives

If the equity value (EV) is... And the 6 percent annual return (AR) requirement is... Then... $6,000 or less met on the excluded equity (i.e., equity is $5,000; AR must be at least $300) exclude the entire EV of the property. $6,000 or less not met on the excluded equity (i.e., equity is $5,000; AR is less than $300) count the entire EV of the property toward the asset limit. greater than $6,000 met on the amount of excluded equity (i.e., EV is $8,000; AR must be at least $360) count the excess EV ($2,000) toward the asset limit. greater than $6,000 not met on the excluded equity (i.e., EV is $8,000; excluded equity is $6,000; AR must be at least $360 count the entire EV (i.e., $8,000 toward the asset limit. $6,000 or less on the total of more than one income-producing property met on the EV of each property exclude the total EV’s of the properties. $6,000 or less on the total of more than one income-producing property not met on the EV of one or more of the properties count the entire value of any property not meeting the 6 percent AR toward the asset limit. greater than $6,000 on the total EV’s of more than one income-producing property met on the EV of each property total the EV’s and count the amount in excess of $6,000 toward the asset limit. greater than $6,000 on the total EV’s of more than one income-producing property not met on the EV of one or more of the properties the entire EV of any property not meeting the 6 percent AR is counted toward the asset limit as well as any excess over $6,000.