For information on OCCS Medical or self-sufficiency programs, please refer to the Administrative Rules. OCCS Medical programs are located in the 410-200 Chapter and Division of the OAR's. The remaining SSP programs are located in the 461 Chapter of the OARs. OCCS, REF(M), SNAP, and other SSP programs have been removed from this section. Click here for SNAP.
Information applies to both OSIPM and QMB/SMB/SMF unless specifically labeled.
Adoption assistance is financial assistance provided to families adopting children with special needs. Adoption assistance may be state or federally funded. Federal adoption assistance is authorized by the Adoption Assistance and Child Welfare Act of 1980 (Public Law 96-272). State adoption assistance is authorized by ORS 418.330 to 418.335.
Exclude the entire amount of adoption assistance from Oregon (all adoption assistance in Oregon is for the special needs of the child).
Exclude the portion of adoption assistance that is for the special needs of the child when the adoption assistance is from other states. This includes needs such as special diet, special clothing, counseling, and medical costs not covered under Title XIX. Count the rest of the adoption assistance as unearned income.
Benefits from the Agent Orange Settlement Fund made by Aetna Life and Casualty Insurance Company for settling Agent Orange disability claims are excluded.
Payments made under the Agent Orange Act of 1991, and issued by the U.S. Treasury through the Department of Veterans Affairs, are counted as unearned income.
The Alaska Permanent Fund Dividend is issued annually to eligible Alaskan residents who apply for the payment. Out-of-state residents, except military personnel and students who claim Alaska as their residence, are not eligible unless they resided in Alaska and filed for the payment before leaving the state.
Count Alaska Permanent Fund Dividend payments as lump-sum income.
If an animal is considered a pet or raised specifically as food for the filing group, it’s excluded. For example, lamb or cattle or chickens that will be slaughtered and eaten by the family would fall under this category, as would chickens that lay eggs eaten by the family or a dairy cow that provides them with milk. Any animal can be considered a pet as long as it doesn’t generate income, including cows, horses, sheep, and chickens. Furthermore, animals can be both pets and a source of food for the family.
The equity value of animals that are raised or kept for eventual sale is countable as a resource. This could include pigs, sheep, or cows that are raised and then auctioned off at fair time or sold to a third party. This could also include puppies bred specifically for sale as pets or show dogs, or horses that are bred or purchased, trained, and re-sold as roping or barrel-racing horses. These animals are countable resources regardless of whether or not they are also considered pets.
There is a distinction between animals that are sold for income (as above) and animals that produce income. For example, if a family has a cow and sells the milk or has chickens and sells the eggs, the animals are considered income-producing property and treated in accordance with the income-producing property rule (see OAR 461-145-0252). On the other hand, if selling the milk or eggs constitutes self-employment (see OAR 461-145-0915), the cow or chicken could be treated as a work-related capital asset and excluded (see OAR 461-145-0600).
Note: If some of the eggs and milk are consumed by the family and the excess is sold, the chickens and cows are still excluded; however, the income from selling the eggs and milk is counted as unearned income.
For a client, an annuity does not include benefits that are set up and accrued in a regularly funded retirement account while an individual is working, whether maintained in the original account or used to purchase an annuity, if the Internal Revenue Service recognizes the account as dedicated to retirement or pension purposes (461-145-0380).
"Child" means a biological or adoptive child who is:
An annuity is counted as a resource if it can't be excluded.
An annuity can be excluded as a resource if:
If an annuity is a countable resource under this section, the cash value is equal to the amount of money used to establish the annuity, plus any additional payments used to fund the annuity, plus any earnings, minus any regular payments already received, minus any early withdrawals, and minus any surrender fees.
If an annuity is excluded, annuity payments are counted as unearned income to the payee. If it's countable as a resource, the payments are excluded as income.
For OSIPM, see below.
How we treat an annuity depends on many factors. In order to figure it out, you will need to know all of the following:
Once you have all that information, you can refer to the Treatment of Annuities section of the APD Worker Guide (APD E.1) to determine how they are treated, including whether the purchase of an annuity is a disqualifying transfer of assets.
All monies in an approved account are excluded as income or a resource during the determination of eligibility; however, the exclusion can only be made if the account has been designated as an Approved Account and approved as such by the local branch prior to eligibility determination.
Monies deposited in the approved account that the client wants to be considered as an Employment and Independence Expense to be used as a deduction from countable income must be approved by the branch prior to the deposit being made.
If monies from the approved account are used for a purpose not consistent with the definition of approved account in 461-001-0035, the client may be prohibited from utilizing an approved account for the next 12 months for the purposes of the determination of eligibility.
A bank account includes a money market account and an account in a financial institution, except that accounts in financial institutions for stocks, bonds, and certificates of deposit (CDs) are covered in CCA B.71.
Money in a bank account is counted as a resource (as long as it's considered available, see 461-140-0020), unless it can be excluded using the criteria below.
The following types of bank accounts are excluded as a resource:
Interest and dividends earned on funds in a bank account are excluded as income.
Note: Be sure to review 461-140-0070 about commingling excluded income with other funds in a bank account.
The following definitions apply to this policy:
The amount in an irrevocable burial trust or any other irrevocable arrangement to cover burial costs is excluded.
A burial arrangement is treated as follows:
- A burial arrangement is treated in the manner as the program treats a burial fund (see below).
- Burial insurance that has cash surrender value is considered life insurance and is treated in accordance with 461-145-0320.
A burial fund may be established only from financial means such as cash, burial contracts, bank accounts, stocks, bonds or life insurance policies. Burial funds are treated as follows:
- A burial fund is counted as a resource if it is commingled with assets unrelated to a burial. The amount set aside for burial must be in a separate account to be excluded from resource consideration.
- A burial fund may be established if the countable resources of a client exceed allowable limits. A burial fund is excluded from the resource calculation to the extent allowed below.
- Up to $1,500 of a burial fund may be excluded from resources for each of the following:
- The client
- The client's spouse
- The $1,500 exclusion above is reduced by the total of the following amounts:
- The face value (not CSV) of life insurance policies owned by the insured individual that have already been excluded from resources (i.e. excluded because the face value is $1,500 or less)
- The amount in an irrevocable burial trust or any other irrevocable arrangement to cover burial costs (or a reserve or plan funded through an income cap trust)
- All interest earned on an excluded burial fund or increases in the value of an excluded burial arrangement if left in the fund is excluded from income.
There is no overpayment for the time period during which the burial arrangement or burial fund existed if a client ---
- Cancels an excluded burial arrangement; or
- Uses an excluded burial fund for any purpose other than burial costs.
If an asset originally used as a burial arrangement or burial fund is converted to other uses, the asset is treated under the other applicable rules.
Burial spaces include conventional grave sites, crypts, mausoleums, urns, and other repositories that are traditionally used for the remains of deceased persons. Burial spaces also include headstones and the opening and closing of the grave.
Burial merchandise includes, but is not limited to, caskets, liners, burial vaults, markers, and foundations.
In the month of receipt, cash is counted as income unless the cash qualifies as excluded income under another rule.
After the month of receipt, cash (including cash on hand, cash in a safety deposit box, and cash held by others) is counted as a resource, unless the cash qualifies as an excluded resource under another rule.
Foreign currency that can be converted to U.S. currency is treated in the same manner as cash under this rule. The value of foreign currency is its value in U.S. currency, determined by the current exchange rate.
The treatment of a check is based on the source of the funds.
Child support and cash medical support paid by a non-custodial parent for a dependent child or minor parent in the financial group are considered income of the dependent child or minor parent, whether the support is paid voluntarily or in accordance with an order to pay child support.
“Pass-through” means child support, up to $50 per dependent child or minor parent per financial group per month and not to exceed $200 per financial group per month, that is sent to the client before any remaining amount of current child support is withheld by the State. Pass-through includes current child support only.
“Disregard” means child support, up to $50 per dependent child or minor parent per financial group per month and not to exceed $200 per financial group per month, that is not counted as income of the client. Disregard includes current child support only.
All child support and cash medical support paid to the financial group are considered countable unearned income. Child support and cash medical support paid by the financial group are not deductible from income.
Example: Single mother of two applies for OSIPM and services. She receives SSD and child support from her ex husband. Per 461-110-0410(1)(a), her children are not in the financial group and therefore, the child support would not be considered income for the mother.
Contributions are monies not considered gifts or winnings given voluntarily to a member of the financial group by someone who is not in the group.
Contributions are counted as unearned income.
For non-cash contributions, see CCA B.41 below for the treatment of unearned in-kind income.
This section will help you determine:
Corporation: A closely-held corporation is usually incorporated by one or a small number of owners. For example, a farmer or a farming family who incorporate their farming business. Note: The owner of a closely-held corporation will have legal documents showing the date the business was incorporated.
A Subchapter S corporation is incorporated under Chapter S of the Internal Revenue Code. Each shareholder is responsible to file his or her own taxes on the profits the corporation distributes. For example, a law firm or other partnership may incorporate their business under Chapter S.
Other corporations include companies that sell stock to investors including the general public. For example, Proctor & Gamble, AT&T, Starbucks, etc.
Ownership interest in a corporation is usually held in the form of stocks.
Other Business Entities: This includes all other business arrangements that are not considered corporations - sole proprietorships, partnerships, and unincorporated limited liability companies (LLC).
From a business standpoint, the corporation is the employer; therefore, an individual with an ownership interest in a corporation (including a principal) does not work for himself but works for the corporation. In other words, they are considered an employee of the corporation and are not self-employed.
For an individual with an ownership interest in, and actively working for a corporation:
For an individual with part or full ownership of a corporation who does not work:
Note: For information on a specific corporation, refer to the Employment Business Locator screen by entering EBLU on a clear DHS mainframe screen. When you locate the business, the bottom of the screen will display navigation tips. Pay attention to 3) owners (or F3) as it will give you the SSN and phone number of all the owners (which is something the Secretary of State's website below will not do). Also see the Secretary of State’s Corporate Division web site.
Other Business Entities
If an individual is part or full owner of any type of a business entity other than a corporation, can be considered a principal, and is working for the business, the individual is considered self-employed and income and resources should be evaluated under the self-employment rules (OAR 461-145-0920 and 461-145-0930 for income and 461-145-0600 for resources).
If the individual has an ownership interest in any type of business entity other than a corporation, does not meet the definition of a principal (e.g. he or she is not responsible for its success or failure or has no authority in its daily operation), but works for the business:
If the individual has an ownership interest in any type of business entity other than a corporation (regardless of principal status), but does not work for the business:
Deeming does not apply when an individual meets the noncitizen status requirements for OSIPM or QMB/SMB/SMF (see list of exceptions below). This means that the only APD medical program sponsor deeming applies to is OSIPM-CAWEM.
An individual or organization may sponsor the admission of a noncitizen under section 204 of the Immigration and Nationality Act (8 U.S.C. 1154).
An affidavit of support (USCIS Form I-864) is the agreement between the sponsor and the United States Citizenship and Immigration Services in which the sponsor agrees to provide financial support for the noncitizen so that the noncitizen will not become a public charge.
Deeming Income and Resources - General
Deemed assets are the portion of the income and resources of an individual not in the financial group (see OAR 461-110-0530) used to determine eligibility and benefit level for a sponsored noncitizen who is a member of the financial group.
To be eligible for benefits, a sponsored noncitizen must provide necessary information about each individual whose assets are deemed to the sponsored noncitizen who is a member of the financial group.
The countable assets of an individual sponsor and the spouse of the sponsor are considered countable assets of the noncitizen. The sponsor's assets are considered available to the noncitizen whether or not the sponsor lives in the same household as the noncitizen. The assets of the sponsor's spouse are considered available only when the spouse lives in the sponsor's household.
Below are some exceptions to considering assets of a sponsor and sponsor's spouse available to the noncitizen:
For OSIPM-CAWEM, the deeming period is three years after the date of admission, which is the date the U.S. Bureau of Citizenship and Immigration Services establishes as the date the noncitizen was admitted for permanent residence. Deeming ends on the last day of the month that is three years after the date of admission
An amount equal to the OSIPM (not OSIPM-EPD) program income standard is deducted from the total amount of income deemed to the noncitizen (see OAR 461-160-0015). If the sponsor lives with a spouse, the two-person standard is deducted. The result is the amount of income considered available (or deemed) to the noncitizen.
The sponsor's or sponsor's spouse's income is not counted if any of the following is true:
An amount equal to the OSIPM (not OSIPM-EPD) program resource standard is deducted from the total amount of resources deemed to the noncitizen (see OAR 461-160-0015). If the sponsor lives with a spouse, the two-person standard is deducted. The result is the amount of resources considered available (or deemed) to the noncitizen.
This section covers public and private disability benefits, except the following:
For each disability payment covered under this rule:
A major disaster is any natural catastrophe such as a hurricane or drought, or, regardless of cause, any fire, flood or explosion, which the President determines causes damage of sufficient severity and magnitude.
An emergency is any occasion or instance for which the President determines that Federal assistance is needed to supplant State and local efforts and capabilities to save lives and to protect property and public health and safety, or to lessen or avert the threat of a catastrophe.
Disaster Unemployment Assistance is emergency assistance authorized under P.L. 100-107 and received by individuals who are unemployed as a result of a major disaster. Individuals receiving Disaster Unemployment Assistance are not eligible for other unemployment compensation and cannot receive both at the same time. Payments are limited to 26 weeks.
The following payments are excluded as income and resources if they result from an emergency or major disaster:
Exception to exclusions:
Dividends and interest income is treated as unearned income except as follows:
Royalties are counted as unearned income, except that royalties are counted as earned income if the client is actively engaged in the activity from which the royalties are accrued.
Under Title I of Public Law 93-113, Domestic Volunteers Service Act of 1973, payments to volunteers under VISTA, University Year of Action and Urban Crime Prevention are treated as follows:
The payments are excluded if the client is receiving program benefits when they join the Title I program. The exclusion of payments continues until the client has a break in receiving benefits of more than one month.
The payments are counted as earned income for clients who joined the Title I program before applying for program benefits.
Payments are excluded under Title II of Domestic Volunteer Service Act (Public Law 93-113, National Older Americans Volunteer Programs), which include:
Payments are excluded under Title III payments (National Volunteer Programs to Assist Small Businesses and Promote Volunteer Service by Persons with Business Experience), which include:
Earned income is income received through employment, received in exchange for an individual's physical or mental labor or any other compensation for services performed. Earned income includes all of the following:
Earned income is counted as income for OSIPM and QMB/SMB/SMF and is subject to the earned income deductions (see OAR 461-160-0550 and 461-160-0551 for OSIPM, OAR 461-160-0780 for EPD, and 461-150-0552 for QMB/SMB/SMF). Countable self-employment income (gross minus allowable costs) is also subject to the earned income deductions.
If an individual is the principal of a corporation and works for the corporation, the money he/she earns is counted as wages rather than self-employment income, so there is no exclusions for costs.
Losses from self-employment are excluded from the gross earned income from a separate source (including other self-employment income). Remember exclusions apply to gross income before costs (the result is countable income) and deductions apply to countable income (the result is adjusted income).
EITC is a federal and state tax program for low-income families. EITC may be received in one of two ways:
EITC payments are excluded from assets.
An MWP tax credit received as a portion of an individual's federal tax return is excluded from assets.
The Individual Education Account (IEA) is an asset accrued by JOBS Plus participants. The IEA is excluded while it accumulates, while it is saved, and when it is withdrawn for educational purposes.
The value of funds in a qualified tuition program under section 529 of the Internal Revenue Code is counted as a resource to the owner of the fund.
Educational income is income designated specifically for educational expenses (this includes including Pell Grants, scholarships, and other government or private grants). To be considered educational income, the income must be given to one of the following:
Educational funds (including non-title IV work study) used for the following education expenses is excluded:
To determine the amount of educational income to exclude from the awarded amount(s), use education expenses listed in the financial aid award letter unless one of the following is true:
The following educational income payments are excluded:
After allowing exclusions:
Count the VA Chapter 31 subsistence allowance as unearned income (see Veterans' Benefits).
Clients may be attending school under the displaced workers program. In this instance, the student will continue to receive weekly Unemployment Compensation (UC) benefits while attending school. Treat Displaced Worker payments the same as UC benefits.
Exclude all energy assistance payments or allowances made under any federal, state, or local law (Public Law 96-249). These payments include:
FAPA payments are court-ordered payments to victims of domestic violence made under authority of ORS 107.718(1)(h). A payment is considered available when actually received by the victim of abuse.
The first $2,500 is excluded. The excess above $2,500 is counted as a resource.
The Department excludes from income a payment received by a veteran or the spouse of a veteran who served in the military of the Government of the Commonwealth of the Philippines during World War II and made under the Filipino Veterans Equity Compensation Fund authorized by the American Recovery and Reinvestment Act of 2009.
Floating homes and houseboats that are the individual's home are treated as a home (see 461-145-0220). Otherwise they would be treated as real property (see 461-145-0420) or income-producing property (see 461-145-0252), depending on the use.
The following benefits are excluded:
Benefits from the Tribal Food Distribution Program are excluded.
Foster care is when an individual is placed in the home of relatives or other individuals or families by a federal, state or local governmental foster care program. This could be child or adult foster care.
Guardianship Assistance payments are made by Child Welfare, for children under age 18, when a person has agreed to be the guardian of the child. These payments are authorized under a foster care waiver.
A foster care payment is:
The payment the foster care provider receives from the foster care program and
For adults in foster care, this also includes their room and board payment and any service payment the client is required to pay their provider.
Treat foster care/guardianship assistance payments as follows:
Gifts are items given to or received by an individual on or for a special occasion, such as a holiday, birthday, graduation, or wedding. They are not given or received on a regular basis. Gifts can be cash or non-cash.
Winnings are prizes given to an individual in a contest, game of chance or similar event. Winnings in the form of money may be distributed periodically (e.g., monthly) or in a lump-sum.
In-kind gifts and winnings are treated according to policy for the rule applicable to the specific type of asset. Treat cash gifts and winnings
Gifts and winnings in the form of money are treated as periodic or lump-sum income.
Gifts and winnings in the form of a gift card or certificate are excluded.
For employment-related items, see 461-145-0130.
People working in the commercial fishing industry may qualify for Groundfish Disaster benefits. These benefits are disbursed through the Oregon Employment Department to persons involved in the commercial fishing industry in Oregon’s coastal communities.
To qualify for Groundfish Disaster benefits, a groundfisher must be working with the Oregon Employment Department as a displaced worker. They must also commit to not return to work in the commercial fishing industry.
The groundfisher eligible for these benefits may receive assistance for up to nine months. The monthly payments can be as much as $1,500 for a family or $1,000 for an individual. The payments may be less if the person is receiving unemployment compensation.
Groundfish Disaster benefits are counted as unearned income for all programs.
A home is the place where the financial group lives. A home may be a house, boat, trailer, mobile home, or other habitation. A home also includes the following:
Exclude the value of a home when it is occupied by the group.
For purposes of this subsection, the term child refers to a biological or adoptive child who is under age 21 or who is any age and meets the SSA criteria for blindness or disability. The definition of child in rule 461-001-0000 does not apply.
For a client who has an initial month of long-term care on or after January 1, 2006, the equity value of a home is excluded when the client isn't in the home if at least one of the following is met:
In the case of a temporary absence, if the value of a home is excluded under the above section, the value of this home remains excluded if the client's absence is due to receiving care in a medical institution and one of the following is true:
For non excluded homes, see rule 461-145-0420.
Exclude payments from HUD made to a third party.
Exclude HUD payments made directly to a member of the financial group, except Youthbuild Program payments and Family Investment Centers payments.
Exclude escrow accounts that are established for families participating in the Family Self-Sufficiency (FSS) program sponsored by HUD.
Treat payments issued under Cranston-Gonzalez National Affordable Housing Act, Pub. L. No. 101-625, sec. 515, 104 Stat. 4196 (1990), as follows:
An income-producing sales contract is an agreement between two parties where one party is to pay the other party on an ongoing basis for property or goods. A common income-producing contract exists when an individual sells land or a home to another party and the other party pays the individual an agreed upon monthly amount.
Treat the equity value of income-producing sales contracts as follows:
Income received from a sales contract is treated as provided in the sale of a resource rule (OAR 461-145-0460).
If it is determined that property is not used in a trade or business, it is then necessary to determine how much time is spent producing the income, or “managing the property.” This is not limited to real property; it applies to all types of property and resources.
If an individual spends more than 20 hours per week managing the property, then the income can be treated as self-employment income. This means costs can be excluded and earned income deductions applied. Again, the income is only treated as self-employment, the property itself is not considered to be used in self-employment.
If the individual does not spend at least 20 hours per week to produce the income, then it is treated as unearned income, BUT actual costs can still be excluded per OAR 461-145-0920.
Count the equity value as a resource, except:
Independent Living Subsidies are payments made and services provided by Child Welfare to children ages 16 through 20. These payments also include payments under the Chaffee Housing Program. The subsidies are to assist the individuals to live independently when their foster care payments were discontinued on or after the date they reached 16 years of age.
Exclude all independent living subsidies issued by Child Welfare.
Exclude the following Indian benefits:
Exclude payments from the Bureau of Indian Affairs.
The following types of distributions provided under Public Law 100-241 (Alaska Native Claim Settlement Act) are excluded:
The Department excludes Indian benefit payments when federal law requires exclusion. These include payments under each of the following federal laws:
Exclude the tax-exempt portion of payments under Public Law 92-203 (Alaska Native Claim Settlement Act). Count the remainder as unearned income.
Treat payments received from trust or restricted lands under Public Law 93-134, Public Law 97-458, and Public Law 103-66 are excluded.
Payments to Seminole Tribe members under Public Law 101-277 are treated as follows:
Payments from the distribution of judgment funds to members of the Confederated Tribes of the Umatilla under Public Law 91-259 are treated as follows:
Payments for assets held in trust to the Sac and Fox Tribe of Oklahoma and Sac and Fox Tribe of the Mississippi in Iowa by the Indian Claims Commission under Public Law 94-189, Section 6 (The Sac and Fox Indian Claims Agreement) are treated as follows:
Payments from judgment funds held in trust by the U.S. Secretary of the Interior under Public Law 98-64 are excluded.
Indian Child Welfare payments under Public Law 95-608 are excluded.
Tribal payments for child care are treated as follows:
Any Indian benefit payments distributed by the tribe and not excluded by public law are counted as unearned income.
Individual Indian Money (IIM) accounts are treated as follows:
Payments from the Tribal Trust Accounting and Management Lawsuits under Public Law 111-291 (section 101) are treated as follows:
An Individual Development Account (IDA) is a trust-like savings account established under P.L. 105-285 designed to help low-income individuals save for specified purposes. The individual makes deposits from his or her earnings, and these are matched by a combination of government and private-sector funds.
For eligibility determinations:
For client liability calculations (see 461-160-0610), all income deposited into an IDA is counted as earned income.
If a client makes an emergency withdrawal from the account, that income is counted as lump-sum income.
An inheritance may be received in the form of monies, property, or other assets. Treat an inheritance as follows:
Treat non-cash inheritances according to policy for the specific type of asset. Count cash inheritances as periodic or lump-sum income.
In-kind income is compensation in a form other than money (such as food, clothing, cars, furniture, and payments made to a third party). See #66 below for information on shelter in-kind income.
Earned in-kind income is treated according to the policy on earned income.
Unearned in-kind income (except third-party payments) is treated as follows:
Treat unearned third-party payments as follows:
For information on how to treat third party payments made by an absent parent, see 461-145-0080.
Treat Job Corps payments as follows:
A life estate is the right to property limited to the lifetime of the person holding it or the lifetime of some other person. In general, a life estate enables the owner of the life estate to possess, use and obtain profits from property during the lifetime of a designated person while actual ownership of the property is held by another individual. A life estate is created when an individual owns property and then transfers their ownership to another while retaining, for the rest of their life, certain rights to that property. In addition, a life estate is established when a member of the financial group purchases a life estate interest in the home of another individual.
For purposes of this rule, the value of the rights conferred by the life estate is established by SPD WG E.3, Life Estate and Remainder Interest Table (use the client's current age).
A life estate owned by a member of the financial group is treated as follows:
In the OSIP(M) programs for those in a non-standard living situation:
Life insurance policies are only a resource to the owner of the policy (or to a beneficiary when it pays out), not necessarily the person insured. For example, individuals can buy whole life policies on their immediate family members and it would be a countable resource to the individual, not the family member.
Beneficiaries of life insurance policies
Benefits paid on a life insurance policy are counted as unearned income in the month received and a resource if retained into the following month.
The Department counts benefits as paid when the insured individual dies or when the insured individual is eligible for and receives accelerated payments before death, such as when the insured individual has a terminal illness.
When the payment is a lump sum due to the death of the insured individual a deduction is allowed, not to exceed $1,500, for the cost of the deceased individual's last illness and burial if these costs were not otherwise insured.
Owners of life insurance policies
Burial insurance that has cash surrender value is treated in the same manner that this rule treats life insurance.
The value of a life insurance policy is treated as follows:
The total cash surrender value of life insurance policies owned by the financial group is excluded if the total face value of all policies for the insured individual is less than or equal to $1,500. If the total face value of all policies for the insured individual is more than $1,500, the entire cash surrender value is counted as a resource to the owner of the policy. The total face value does not include dividend addition. A dividend accumulation must count as a resource even if the face value of the policy is excluded.
The cash surrender value of a policy acquired through a viatical settlement is excluded.
Note: The cash surrender value (CSV) of a life insurance policy can be excluded if the ownership of the policy has been irrevocably assigned to a funeral home. If a funeral home is named as the irrevocable beneficiary (instead of an irrevocable transfer of ownership), the policy can only be excluded if the assignment contains specific language that prevents the owner of the policy from accessing the cash surrender value of the policy by loan or policy cancellation.
A loan is a debt that the borrower must repay.
This section covers proceeds of loans, loan repayments, and interest earned by a lender. If the proceeds of a loan are used to purchase an asset, the asset is evaluated under the policy outlined in the other sections of this manual. The following policy applies to cash loans.
The proceeds of a home equity loan or reverse-annuity mortgage are considered bona fide agreements (see below for treatment).
- Note: A reverse mortgage can be received by a person age 62 or older as a loan against the equity in their home. The loan is due for repayment when the borrower permanently moves out or sells the property or upon death of the borrower. The loan can be received as monthly payments, as a lump sum, or as a line of credit. When it is a line of credit, only the funds the client withdraws from the line of credit are considered the client's assets.
For loans that a member of the financial group receives as a borrower:
For loans that a member of the financial group makes as a lender:
OSIPM (standard living arrangement) and QMB/SMB/SMF
OSIPM (non-standard living arrangement)
Note: Please contact the APD Medicaid financial policy unit for assistance with the treatment of loans. Click here for contact info.
A lodger is a member of the household group who---
Lodger income is the amount a lodger pays the filing group for either the room, or room and board in the filing group's primary residence (i.e. the client is renting out a room in their home).
Lodger income is treated as unearned income and can be reduced by the certain expenses.
The allowable expenses are prorated based on the number of rooms for rent compared to the number of rooms in the home (excluding bathrooms, but including attics and basements if they have converted to living spaces). The allowable expenses include:
Lodger income is generally not treated as self-employment unless the filing group is in the business of renting out rooms (such as with a commercial boarding house or a bed and breakfast).
Manufactured and mobile homes that are the individual's home are treated as a home (see 461-145-0220). Otherwise they would be treated as real property (see 461-145-0420) or income-producing property (see 461-145-0252), depending on the use.
This policy is regarding military pay and allowances of a member of a uniformed service. This income is treated as follows:
Military income is counted as earned income of the military member's financial group, except that only the portion of military pay and allowances made available to the financial group is counted as unearned income if the member is not included in the filing group.
The value of disability-related apparatus, optional equipment, or low mileage is not considered in determining the fair market value of an automobile, truck, or van. The fair market value of an automobile, truck, or van is presumed to be the "average trade-in value" established in the NADA Used Car Guide. If the vehicle is not listed in the NADA Used Car Guide, the "average trade-in value" established in the Kelley Blue Book is used. If the vehicle is not listed in the NADA Used Car Guide and Kelley Blue Book, the "average trade-in value" established in a similar publication is used. A client may rebut the presumption with a statement from a car dealer, mechanic, or other reliable source. If the vehicle is not listed in the NADA Used Car Guide, Kelley Blue Book, and a similar publication, the estimate of the value by the client may be accepted unless it appears questionable, in which case additional evidence of the value is required.
The total value of a vehicle selected by the financial group is excluded if it is used for transportation of the client or a member of the client's household.
The total equity value of any vehicle not excluded above and all other vehicles is counted as a resource.
Note: Examples of vehicles that would not be excluded would be a vehicle that nobody drives because it is not licensed and/or insured or a vehicle for sale on a consignment lot.
In the EPD programs, if a vehicle was purchased as an employment and independence expense or with moneys from an approved account, the total value of the vehicle is excluded.
The National and Community Service Trust Act (NCSTA) of 1993 (P.L. 103-82) amended the National and Community Service Act (NCSA) of 1990 (P.L. 101-610) that established a Corporation for National and Community Service. The Corporation administers national service programs providing living allowance, educational award, child care and in-kind benefits.
These payments are excluded. This also includes:
Benefits under Title III of the Older Americans Act of 1965 (Nutrition Program for the Elderly) are excluded.
A wage or salary paid to persons 55 years of age and older under Title V of the Older Americans Act of 1965 is considered earned income.
Note: Organizations receiving Title V funds are: Green Thumb, Experience Works, American Association of Retired Persons, National Association for Spanish-Speaking Elderly, National Council on Aging, National Council on Black Aging, National Council of Senior Citizens, National Urban League, U.S. Forest Service. In Oregon, some seniors working for Easter Seals may also be paid using Title V funds. Confirm the funding source before excluding the income.
Pension and retirement plans include the following:
Benefits the client receives from pension and retirement plans are treated as follows:
An annuity purchased by the spouse of an individual with funds from a retirement plan authorized by section 408 of the Internal Revenue Code described above is not considered a retirement plan and is treated in accordance with OAR 461-145-0020 and OAR 461-145-0022.
Except for an annuity purchased by an individual with funds from a retirement plan authorized by section 408 of the Internal Revenue Code described above:
The equity value of an annuity purchased by an individual with funds from a retirement plan authorized by section 408 of the Internal Revenue Code described above is excluded as a resource if it meets the payout requirements in the annuity section of this worker guide. Otherwise, the equity value is counted as a resource.
For individuals in a standard living arrangement, pension and retirement plans owned by a non-applying spouse are excluded. Dividends and interest earned on pension funds owned by a non-applying spouse are excluded as income.
Note: Clients who choose to begin receiving payments from a retirement plan so that it will not be counted as a resource, should seek financial advice on the Internal Revenue Code Section 72(t). When the client arranges equal periodic payments over the life expectancy, this tax code allows access to the retirement funds early without incurring a 10% tax penalty.
- A member drawing PERS retirement benefits may be entitled to increased payments when the following criteria are met:
- The PERS member is age 80 or more.
- The beneficiary named by the PERS member is deceased.
- The PERS member chose option 2 or 3 or lump sum option 2 or 3 when he or she retired.
In order for the PERS member to claim the increased payments, he or she will need to send a copy of the deceased beneficiary’s death certificate and a letter to PERS requesting the “age 80 increase.” If eligible, the monthly PERS payments will be increased and there may be a retroactive payment issued.
In addition, when a PERS member dies, the surviving spouse or other beneficiary may be entitled to PERS benefits. Within 90 days of the PERS member’s death, the spouse or other beneficiary should contact PERS to inquire about eligibility for payments or continued health insurance coverage.
The contact information for PERS is as follows:
P.O. Box 23700
Tigard, OR 97281-3700
Toll free: 1-888-320-7377
Personal belongings are such items as household furnishings, clothing, heirlooms, keepsakes, and hobby equipment.
The value of personal belongings is excluded.
For all programs, treat personal injury settlements as follows:
This policy does not apply to workers compensation payments.
A plan for self-support allows a client to retain a part of his or her assets for a specific period of time so they can meet specific occupational goals. Social Security Administration may establish a plan for self-support with SSI recipients. APD may also establish a plan for self-support OSIPM and QMB/SMB/SMF clients who meet disability criteria (established by SSA or PMDDT) but are not eligible for SSI (see OAR 461-135-0708).
Assets listed in an approved plan for self-support are excluded.
Treat OSIP (except OSIP-IC), Post-TANF, REF, SFPSS, TANF, and tribal-TANF payments as follows:
REF and TANF client incentive payments are treated as follows:
Exclude payments or benefits from the following programs:
Treat JOBS Plus wages received after the individual's last month of work under a TANF-PLS JOBS Plus agreement as earned income (see OAR 461-145-0130)
Payments from OSIP-IC and funds held in a contingency fund are excluded.
When a client in a non-standard living arrangement applies for OSIPM, exclude a resource amount equal to the insurance payments received under a qualified partnership policy, as of the initial month of eligibility, unless the policy was purchased in a state that does not participate in reciprocity.
The resources excluded under this provision can be any resources that would otherwise be counted, except for a home with equity that exceeds the limit in 461-145-0220 (2)(a).
(see WG.10 for additional information)
Radiation Exposure Compensation Act payments are issued to compensate individuals for injuries or deaths resulting from exposure to radiation from nuclear testing or uranium mining. For all programs, exclude these payments.
The Research Assistance for Rural Environments (RARE) is an AmeriCorps program administered through the University of Oregon. The program assists rural communities in their efforts to improve their economic, social and environmental conditions. Local communities request the assistance of this program and provide part of the funding. The program is supported through grants from various federal and state agencies.
RARE participants are graduate-level people who reside in the local community. They work in this program for 11 months and receive monthly living stipend and medical health insurance.
The monthly stipends are treated as AmeriCorps benefits and excluded.
For purposes of this rule, manufactured and mobile homes and floating homes are treated in the same manner as real property.
The applicant has the burden of proof of establishing the fair market value of real property. Fair market value may be established by any methodology determined to accurately reflect the fair market value of the real property, including the provision of an appraisal or comparative market analysis performed by an impartial individual who is certified or licensed in the applicable jurisdiction.
Sometimes tax assessor records are not the best way to determine fair market value. For example, current property tax records may overvalue property that has deteriorated. An appraisal may reflect a more realistic property value. Alternatively, property tax records may sometimes undervalue property, such as homes, farmland, and timberland. If property is appraised at or sells for more than the tax assessor’s listed current market value then the most accurate property value is the greater of the appraisal’s value or what it sold for.
If property sells for less than either the tax assessor’s current market value or an appraisal’s value, then that is a red flag to investigate why a sale was for less than fair market value. Sales or transfers of property for less than fair market value are potentially disqualifying transfers. Generally, the following methods can help to accurately determine fair market value:
- Using the highest value identified by the county assessor on the most recent property tax record.
- Using the value established by an appraisal or comparative market analysis as the current amount the real property would sell for on the open market.
- Using the gross sale price of property that has sold.
Treat real property that is not income-producing or the financial group's home as follows:
Note: A good-faith effort to sell property includes listing the property for sale in the local newspaper, putting a "For Sale" sign on the property, and/or listing the property with a real estate company.
The treatment of real property that is income-producing is covered in income-producing property.
The treatment of the home of the financial group is covered in the policy on homes.
A recreational vehicle includes:
The equity value of recreational vehicles is counted as a resource.
Exclude the following refunds in the month they are received:
Count any refund amount remaining after the month of receipt as a resource. See rule 461-145-0530 for information on tax refunds.
A reimbursement is money or in-kind compensation provided specifically for an identified expense.
For the treatment of USDA meal reimbursements, see 461-145-0570.
The reimbursement of a business expense for a self-employed client is treated as self-employment income.
Reimbursements are treated as follows:
A Resettlement and Placement (R & P) grant is a payment made by the United States Department of State through national refugee resettlement agencies to local resettlement agencies, refugee sponsors and refugees. The R&P grants are provided to the resettlement agencies to help with the costs of initial resettlement of refugees in the United States. The resettlement agencies provide a part of this grant to refugees, usually in their first month after arrival, for their initial resettlement needs, and not for ongoing living expenses.
R & P grants determined to be available to the refugee case are considered unearned income.
For grandfathered OSIPM clients (see OAR 461-135-0771) refer to OAR 461-145-0460.
Proceeds from the sale of a resource other than a home occurring prior to October 1, 2012
Proceeds from the sale of a resource other than a home occurring on or after October 1, 2012
Proceeds from the sale of the home of the financial group occurring before October 1, 2012
Proceeds from the sale of the home of the financial group occurring on or after October 1, 2012
At the same time, he entered into a contract with a roofing company to repair the roof on the new home. The contract terms state that Sam will pay the contractor $5000 once the roof is repaired and the work is completed. The contractor has stated that it will be 5 months before the work is completed.
Even though Sam has not “spent” the $5000 within 3 months of receiving the funds from the sale of his home, this amount is still excluded. Because he entered into the roofing contract, and became obligated to pay $5000 upon completion of the work, the funds are considered to have been reinvested in the purchase of another home, and are therefore excluded. In this instance, Sam reinvested the entirety of the proceeds of the sale of his home in another home. The entire proceeds are excluded.
Note: See rule 461-145-0240 for information on how to treat the proceeds from a resource sold on contract.
Shelter-in-kind (see OAR 461-001-0000) is when an agency or person outside the financial group provides the financial group's shelter, or makes a payment to a third party for some or all of the group's shelter costs.
Shelter-in-kind does not include temporary shelter provided by a domestic violence shelter, homeless shelter, residential alcohol and drug treatment facilities or situations where no shelter is being provided, such as sleeping in a doorway, park or bus station.
Shelter-in-kind applies to QMB/SMB/SMF, and to OSIPM when a prorated standard does not apply. When a prorated standard does apply for OSIPM, all shelter-in-kind is excluded. See 461-155-0250 to determine whether or not a prorated OSIPM standard applies. Otherwise:
For the purposes of this section, a payment is retroactive if it is issued in any month after the calendar month for which it is intended.
Social Security benefits (SSB) are treated as follows:
Money remaining from Social Security death benefits after the payment of burial costs is treated as lump-sum income.
Spousal support is income paid (voluntarily, per court order or per administrative order) by a separated or divorced spouse to a member of the financial group.
Spousal support is counted as unearned income. Do not allow spousal support paid by the group as an income deduction, except as provided in 461-160-0620.
SSI payments are not counted as income in the traditional sense; instead, they are considered inasmuch as the receipt of SSI benefits results in assumed eligibility for OSIPM and QMB-BAS.
A retroactive SSI payment is excluded as a resource for nine months after the month of receipt. After the nine-month period, any remaining amount is a countable (see OAR 461-001-0000) resource. For the purposes of this section, a payment is retroactive if it is issued in any month after the calendar month for which it is intended.
Except as provided in the paragraph below, the equity value (see OAR 461-001-0000) of mutual funds, and, securities (including stocks, bonds, educational savings bonds), and certificates of deposit (CDs), is counted as a resource. Interest and dividends on these items are treated as provided in the interest and dividend rule (OAR 461-145-0108).
The value of a savings bond issued by the United States Department of the Treasury is excluded during the minimum retention period if the owner has received a denial of a request for a hardship waiver based on financial need.
A request for a hardship waiver may be made to the United States Department of the Treasury, Bureau of Public Debt, Accrual Services Division, PO Box 1328, Parkersburg, West Virginia 26106-1328.
Strikers' benefits are payments made to strikers by their union, whether or not based on the striker's participation in picketing.
Count strikers' benefits as unearned income.
Income tax refunds and property tax refunds, including Elderly Rental Assistance (ERA) are counted as a resource.
Ticket to Work is a Social Security Program mandated under the Ticket to Work and Work Incentives Improvement Act of 1999. The intent is to enable social security beneficiaries to obtain, regain or maintain employment and to reduce their dependency on cash assistance.
Ticket to Work is for most Social Security Disability (SSD) and Supplemental Security Income (SSI) clients who are between age 18 and 65. The program is voluntary. Recipients may use the “ticket” to obtain vocational rehabilitation, employment or other support services from an approved provider of their choice to help them to go to work and achieve their employment goals. The recipient may be placed in on-the-job training or in school.
Most recipients participating in the Ticket to Work program are not receiving money from SSA for Ticket to Work. Instead, SSA is sending payments to the provider to reimburse the provider for their costs to provide the services. The recipient may continue to get SSD or SSI while in the training, etc. They may be paid a wage when work begins. They lose SSD or SSI when their income exceeds the allowable limits for SSD or SSI.
Some recipients of Ticket to Work will receive a stipend or training allowance. The stipend is counted as unearned income.
Count the income from employment as earned income. Count SSD or SSI as unearned income.
The transfer will not supersede recovery by the Estates Administration Unit
Trust funds are money, securities or similar property held by a person or institution for the benefit of another person.
Trusts other than special needs trusts, income cap trusts, and pooled trusts.
Special needs trust
Special needs trusts are not considered in determining eligibility for OSIPM or QMB/SMB/SMF.
A special needs trust is characterized by all of the following:
Income cap trusts established between October 1, 1993 and March 31, 1995
This applies to trusts established between October 1, 1993 and March 31, 1995 for the benefit of the client and containing only the current and accumulated income of the client. The accumulated amount remaining in the trust shall be paid directly to the state upon the death of the client up to the amount of medical benefits provided on behalf of the client. The trust is the total income in excess of the income standard for OSIPM. The remaining income not deposited into the trust shall be available for the following deductions in the order they appear prior to applying the patient liability:
Income cap trusts established on or after April 1, 1995
These trusts are established for the benefit of the client whose income is above 300 percent of the full SSI standard and containing the current and accumulated income of the client. The accumulated amount remaining in the trust shall be paid directly to the state upon the death of the client up to the amount of medical assistance provided on behalf of the client. The trust contains all of the client's income. The income deposited into the trust shall be distributed monthly in the following order:
Note: If there is an accumulated excess amount equal to or more than the transfer of assets divisor, a disqualification should be calculated.
For more information on trusts, see OSIP WG.5.
Pooled trusts are not considered in determining eligibility for OSIPM (with one exception below) and QMB/SMB/SMF as long as they meet the following criteria:
For OSIPM clients in a non-standard living situation, if the client is age 65 or older when the trust is funded or a transfer is made to the trust, the transfer may constitute a disqualifying transfer of assets under 461-140-0210 and following.
Unemployment compensation benefits are treated as follows:
Reimbursements from the Federal Uniform Relocation Assistance Act (42 U.S.C. 4621 - 4625) and from the Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4651 - 4655) are excluded.
USDA meal reimbursements are cash reimbursements for family day care providers who serve snacks and meals. The reimbursements are made by the Department of Education and the amount of the reimbursement is determined by family size and income.
USDA meal reimbursements to child care providers for children in their care are counted as self-employment income.
The portion of USDA meal reimbursements made for children in the filing group is excluded.
Child care providers often have young children of their own who are present at the same time as children in care. When the provider receives the USDA meal reimbursement, they submit the voucher for both the children in care and their own children who were present for the snacks and meals. Exclude the part of the meal reimbursement for the provider's own children as follows:
Note: Family day care providers can exclude the cost of meals they provide. See 461-145-0920 for more information.
Code disability and Aid and Attendance benefits in ACCESS as Veteran benefits and retirement benefits as Military pension.
Veteran benefits – The N/R Type will be blank when you bring it down after clicking Change N/R List during integration. Enter UME or VET based on the individual's situation as indicated below.
Military Pension – the N/R Type will be blank when you bring it down after clicking Change N/R List during integration, so you must manually enter VET.
Treat veterans' benefits, other than Aid and Attendance and educational benefits, as follows:
Treat veterans' Aid and Attendance payments as follows:
Use the SCLM screens for CBF clients and the HINQ and SFMU screens for in-home service clients to determine the amount of the Department’s service payment. For NF cases, search for the appropriate time frame under CLAIMS in MMIS.
For CBF clients, find the appropriate time period in the Serv Beg and Serv End columns and add up the corresponding amounts in the Paid column. The total will be the Department's service payment.
For in-home clients, it is a two-step process. You must first view the HINQ screens to determine the total cost of services. Then you will view the SFMU (pay-in) screens to determine how much the client paid. The difference between the total cost of services and what the client paid is the Department's service payment:
HINQ,r,prime # - Type s in the row that corresponds to the appropriate month and press Enter to access the HINV screen
HINV - From this screen, press or click F11 - HDTL
HDTL - To determine the total service payment, look at the BILL TOTAL amount. Repeat for each month covered under the retroactive A&A payment (make sure to record it somewhere before looking at the next month).
Now it's time to determine what the Department paid. Remember you will have to look at the SFMU screens to find the client’s pay-in for those months and subtract from the BILL TOTAL.
SFMU,r,prime # - Enter the client’s prime number in the Prim ID field, type any character next to Monthly Accounts (MACT) and press Enter
MACT - Find the appropriate months under Date Eff, and look at the Amt Paid column to find the client’s portion of the total service payment. Again, you will subtract this amount from the BILL TOTAL amount on the HDTL screen for each month covered in the retroactive A&A payment.
Once the total amount due is calculated, the money should be collected and receipted according to the SSAM (II.G.3, Receipting Repayment for Past Assistance – http://www.dhs.state.or.us/spd/tools/additional/ssam/02.g.htm#03
Example 1: Scott has been residing in an Assisted Living Facility for the last 18 months as a Level 2 ($1,242.00). His income is $1,038.00, he has $20.00 in medical deductions for prescriptions, his liability is $308.00 ($1,038 - $710 OSIPM standard - $20 RX costs = $308.00), and the Department’s service payment is $934.00 ($1,242.00 ALF rate - $308.00 liability = $934.00). In September, he learned that he was approved for $850.00 per month in Aid and Attendance benefits from the Veterans Administration. He notifies you that the effective date was 6 months prior (in March) and that he received a check for $5,950.00 which includes his current month’s (September) benefit. Scott was hospitalized in June for 24 days and his liability covered the ALF’s payment for that month (i.e. the Department did not pay the ALF in June). In this case, Scott would be responsible to pay $850.00 per month (except for June) because it’s less than the Department’s service payment. The total amount payable to the Department would be calculated as follows:
- $850.00 March
- $850.00 April
- $850.00 May
- $0.00 June
- $850.00 July
- $850.00 August
- $850.00 September
- $5,100.00 Total Due to the Department
The extra $850.00 he received in September (for June) is countable as lump-sum income in September (less the $20 exclusion allowed in 461-140-0120). In October, you would have to determine how much of the $830.00 was left and include it in his countable resources. If it will put him over resources, he will have to spend down to remain eligible; one option would be to repay the Department for past assistance. Note: Remember that his ongoing Aid and Attendance payments are not countable when determining financial eligibility; they are only used to calculate his liability.
Example 2: Gladys is a longtime in-home service client. Her total cost of services is $584.91, her income is $1,332.00, her pay-in is $122.00 ($1,332.00 income - $1,210.00 need standard = $122.00), and the Department’s service payment to her HCW has consistently been $462.91 per month. She was notified in December that she was approved for Aid and Attendance benefits of $1,000.00 per month back to July. She received $6,000.00 in December, which included the current month’s benefit and the previous 5 months. In this case, she would be responsible to pay back the Department’s service payment from July – December calculated as follows:
- July: $462.91
- August $462.91
- Sept. $462.91
- Oct. $462.91
- Nov. $462.91
- Dec. $462.91
- Total $2,777.46
The excess benefits are subtracted from the retroactive portion of the payment and would total $2,222.54 ($5,000 - $2,777.56 = $2,222.54). This amount, (less the $20 exclusion) is counted as lump-sum income in December and as a resource in January. The reporting and notice requirements prevent her from losing eligibility in December due to excess income; however, she would be over resources beginning in January. In this scenario, Gladys would need to spend down so that she remains resource eligible. One option would be to reimburse the Department for other past assistance. The amount of the reimbursement will depend on her other countable resources, but would be a minimum of $202.54 ($2,222.54 countable lump-sum income - $20 lump-sum exclusion - $2,000 resource limit = $202.54).
Example 3: Patrick has been in a nursing facility for 9 months at the basic rate of $5,928.35 per month. His gross income is $925.00 per month. In April, his daughter informs you that he was approved for $1,000.00 per month in Aid and Attendance benefits retroactively back to January and that he just received a check for $4,000.00 (which covers January – April). Patrick’s NF liability is $895.00 and the Department’s service payment to the NF is $5,033.35. In this scenario, Patrick would owe the Department the amount of his total A&A benefit for the months of January, February, March, and April:
- Jan: $1,000.00
- Feb: $1,000.00
- Mar: $1,000.00
- April: $1,000.00
- Total $4,000.00
Treat educational benefits from the Veterans Administration according to rule 461-145-0150.
The following payments are excluded:
A subsistence allowance from a training and rehabilitation program of the United States Veterans Administration is treated as unearned income.
Vocational rehabilitation payments: 461-145-0585
Payments to victims of Nazi persecution covered by Public Law 103‑286 and payments to victims of crime under 42 U.S.C. 10602 (The Crime Act of 1984) are excluded as income, and amounts retained are excluded as a resource as long as the amounts are not commingled with other funds.
For other types of victims' assistance:
Except for benefits from the United States Veterans Administration:
Benefits from the United States Veterans Administration are treated as provided in the section on Veterans' benefits.
Treat Workforce Investment Act (WIA) (see OAR 151-010-0020) payments made under Title I-B as follows:
For workers' compensation payments received monthly or more frequently, count as unearned income.
All other workers' compensation payments are counted as periodic or lump-sum income.
Capital asset means property that contributes toward earning self-employment income, including self-employment income from a microenterprise (see OAR 461-001-0000), either directly or indirectly. A capital asset generally has a useful life of over one year and a value, alone or in combination, of $100 or more.
Inventory means goods that are in stock and available for sale to prospective customers.
Work-related equipment means property essential to the employment or self-employment of a financial group member. Examples are a tradesman's tools, a farmer's machinery, and equipment used to maintain an income-producing vehicle.
Capital assets, inventory, and work-related equipment are excluded.
The rule specifically states that inventory is only excluded as long as the client is engaged in self-employment activities; however, if the client is not engaged in self-employment activities, property no longer meets the definition of a capital asset or work-related equipment and would be treated according to the specific rule which covers the type of property.
For example, a truck used in Larry's landscaping business would be excluded as a capital asset as long as he's in business. If Larry closes his business, the truck would be no longer be defined as a capital asset; it would be considered a motor vehicle and treated according to OAR 461-145-0360.