5154-4 ITEMS OF EMPLOYMENT
Tools and light or farm machinery are exempt as personal effects. Tools required by a school as a condition of enrollment and tools required by an employer as a condition of employment is also exempt as personal property.
Stock and Inventory essential to the production of self-employment income may also be exempt resources, Stock and Inventory includes all items necessary to produce gross self-employment income, including fishnets, traps, motor vehicles (including fishing boats), and Limited Entry Fishing Permits.
In order to be exempt, such items must be used primarily for income producing purposes. They must also be actually producing income.
Note:
A limited Entry Fishing Permit that Commercial Fisheries Entry Commission
(CFEC) has classified as non-transferable has
no value. These permits are valid for the permit holder’s lifetime, as
long as they are renewed each year, but they cannot be transferred or
sold.
5154-4 C. DEFINITION OF PRODUCING INCOME
1. "Producing Income" for self-employment:
Means producing gross self-employment income (before any business deductions are given) for a person whose needs are included in the household or for a person whose net countable income, if any remains after deductions, would be considered available to the household.
2. "Producing Income" for seasonally self-employed persons:
Means producing income now, or produced income last season and is expected to do so next season.
A short-term exception may be made in unusual circumstances where the client was prevented from producing by reasons beyond his or her control (such as illness, fisheries closure, strike, or machinery breakdown).
5154-4 D. ITEMS ON CONSIGNMENT
It is common to encounter situations in which a client carves ivory or makes other items, which he or she then places on consignment with one or more retail merchants. If and when an item sells, the client then receives payment from the merchant.
There may be one or more months each year in which no sale is made. The stock and inventory should be disregarded during such no-income periods, as long as it is actually on consignment and up for sale.
5154-4 E. STOCK AND INVENTORY FOR SALE
A similar exception may be made for regular stock and inventory not on consignment. If the stock and inventory is actually for sale, offered as part of a legitimate business, it can be considered as exempt resources in any month in which, for reasons beyond the control of the client, there is no gross self-employment income.
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