S.D. Admin. R. 67:46:05:21

Current through Register Vol. 51, page 67, December 16, 2024

Section 67:46:05:21 - Nonbusiness income-producing property

Income-producing real or personal property is excluded as a resource if it meets the following requirements:

(1) It is essential to self-support;

(2) The individual's equity in the property is less than $6,000; and

(3) The individual's net annual return on the equity is at least six percent. The net annual return requirement must be met every year. However, if the property produces less because of circumstances beyond the individual's control, there must be a reasonable expectation that the property will again produce six percent income within 24 months following the last day of the tax year in which the income fell below six percent of the equity.

If equity in the property exceeds $6,000 and the six percent net annual return is met, the equity in excess of $6,000 must be combined with other countable resources and applied toward the resource limit.

If the net annual return is less than six percent of the equity value, the total equity is an includable resource.

If more than one nonbusiness income-producing property is involved, the total equity value of all nonbusiness income-producing property is considered within the $6,000 limit and the return rate of six percent of equity applies to each property. Any property which does not meet the six percent return rate must be counted toward the resource limit together with any equity which exceeds the $6,000 limit.

Liquid resources are not considered property essential to self-support except when used as part of a trade or business.

S.D. Admin. R. 67:46:05:21

2 SDR 74, effective 5/13/1976; 4 SDR 10, effective 8/28/1977; 7 SDR 66, 7 SDR 89, effective 7/1/1981; 8 SDR 170, effective 6/21/1982; 9 SDR 133, effective 4/27/1983; 13 SDR 8, effective 8/3/1986; 17 SDR 187, effective 6/3/1991; transferred from § 67:16:20:13, effective 8/23/1992; 41 SDR 93, effective 12/3/2014.

General Authority: SDCL 28-6-1.

Law Implemented: SDCL 28-6-1.

Resource limit, § 67:46:05:30. Exclusion of property of a trade or business essential to self-support, 20 C.F.R. § 416.1222. Exclusion of nonbusiness property essential to self-support, 20 C.F.R. § 416.1224.