Income producing property is one of the following.

1.Property which annually produces income consistent with its fair market value, even if only used on a seasonal basis (e.g. - farmland rented for the crop season). See FSC 4441 for instructions on determining fair market value.

2.Property essential to the employment or self-employment of a household member (e.g. - farmland used by a household member to produce a crop for sale).

3.Rental homes, which may be used by households for vacation purposes at some time during the year, but which annually produce income consistent with their fair market value.

4.Work related equipment, such as the tools of a tradesman or the machinery of a farmer, which is essential to the employment or self-employment of a household member.

NOTE:Tools are excluded either as personal property or income producing property.

Property essential to the self-employment of a household member engaged in a farm operation may be excluded as a resource for one year from the date the farm operation is terminated. The exclusion extends to vehicles used in the farming operation (FSC 4430) as well as land and machinery used in the operation.

**5.Installment contracts payable to the household. See FSC 4570 for

instructions on excluding installment contracts when the purchaser

has defaulted on the agreement.