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Wisconsin Department of Health and Family Services Obsolete Medicaid Eligibility Handbook For the current MEH, see http://www.emhandbooks.wi.gov/meh-ebd/ For the current BC Plus Handbook, see http://www.emhandbooks.wi.gov/bcplus/ |
Business assets are generally income Income is anything you receive in cash or in kind that you can use to meet your needs for food, clothing, and shelter. producing property. Exclude assets directly related and essential to producing goods or services.
In EBD cases, all real and nonreal business property is exempt if the business is currently operating (4.2.1.3) for the self-support of the EBD individual. There is no profitability test.
Note: See 4.5.9 for other EBD non-home property exclusions.
Ask the EBD person to furnish the documents (4.2.2.2) needed to:
Describe the business, its properties, and its assets.
Show the number of years it has been operating.
Identify any co-owners.
Show the estimated gross and net earnings for the current tax year.
If the property is not currently operating, exempt it if there is reasonable expectation it will resume operating within the next 12 months. Base your reasonable expectation on the following information:
Date of last use.
Reason property is not in current use.
Estimated date the person expects to resume use.
If s/he decides not to resume, the property becomes a countable asset in the month after the decision not to resume.
Extend the 12 months only when a disabling condition prevents the person from resuming business use of the property.
With corporations you can easily distinguish between personal and business checking and savings accounts. A corporation is a separate legal entity and the accounts it owns must be in the corporation's name. Accounts in the name of the owners are personal accounts.
For partnerships and sole-proprietorships, a cash account is a business account if the person claims that it is a business account. Disregard a business account, if the profitability test is passed, even if a partner or sole-proprietor makes withdrawals from the account for personal use. You don’t need a profitability test for EBD cases.
This page last updated in Release Number : 05-02
Release Date : 05-10-05
Effective Date :05-10-05
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