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NA EXCEPTION
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Do not count installment contracts or notes held for the sale of land, buildings, vehicles, or other property as a resource when the contract or agreement is producing income consistent with the property's current market value. (See Property CMV)
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Consider a contract or mortgage as income producing property, and do not count it as a resource, when it is producing monthly income at least 1% of the property CMV. To determine whether the contract is producing income consistent with the property's CMV complete the following:
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●Determine the property's CMV. This can be determined through realtor, by using the county assessor's statement card, or from an appraiser's written statement.
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●Divide the monthly income produced by the contract by the property's CMV.
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Treat the income as follows:
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●When the income is less than 1%, the contract value is countable as a resource.
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●When the income is at least 1%, the contract value is not countable as a resource.
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When not countable, consider the total payment received from the sales contract as self-employment income from which costs of doing business are subtracted. (See Self-Employment Sales Contracts)
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