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16.8.1.7 Vehicles that are Homes Vehicles such as motor homes and boats are considered home property for Medicaid purposes under certain circumstances. Consider a vehicle: • Home property if the member currently lives in it as their primary dwelling or had lived in it as their primary dwelling before entering an institution. If the member owns the land that the vehicle is sitting on, consider the land and any other buildings on that land as part of the homestead. The member does not need to own the vehicle itself for the land on which the vehicle is located to be considered home property. • Non-home vehicle property if the member does not live in it as their primary dwelling or had not lived in it as their primary dwelling prior to entering an institution. This page last updated in Release Number: 26-01 Release Date: 02/13/2026 Effective Date: 01/01/2026 16.9 Property Essential to Self-Support 16.9.1 Introduction to Property Essential to Self-Support Certain assets deemed to be essential to an individual's means of self-support are excluded. These assets fall into three main categories: • Property used in an established trade or business, which is excluded regardless of its value or rate of return if the business is currently operating for the self-support of the individual or their spouse, or there is a reasonable expectation it will resume operating within the next 12 months (see SECTION 15.6.3.1 BUSINESS ASSETS) • Nonbusiness property used to produce goods or services essential to self-support, which is excluded up to $6,000 • Nonbusiness income-producing property, which is excluded up to $6,000 if it produces at least a six percent rate of return 16.9.2 Business Property Excluded Regardless of Value Rate of Return This category includes: • Property used in a trade or business, if the individual is actively involved in the business operation on a day-to-day basis • Government-issued permits (such as commercial fishing permits) • Personal property used by an individual as an employee for work or required by an employer for work Note: Rental property is not considered business property unless the property owner is in the business of renting and managing properties. If a person simply owns a piece of property and is renting it to produce passive income, they are not considered to be the owner of a trade or business. The information reported on the Schedule E, Supplemental Income and Loss (if applicable), should be checked to determine whether the individual is actively engaged in the business. If the income is listed as Non-Passive Income, the individual is actively engaged in the business. When determining if a trade or business exists in an LLC or other questionable situations, the agency should consider: