Assets have both a market value and a cash value. Under the rules of Part 5, only the cash value (rather than the market value) of an item is counted as an asset.

The market value of an asset is simply its dollar value on the open market.

For example, the market value of a share of stock is the price quoted on the stock exchange on a particular day. A property's market value is the amount it would sell for on the open market. This may be determined by comparing the property with similar, recently sold properties.

An asset's cash value, however is the market value less reasonable expenses required to convert the asset to cash, including:

• Penalties or fees for converting financial holdings, such as penalties charged for premature withdrawal of a certificate of deposit, the transaction fee for converting mutual funds to cash or broker fees for converting stocks to cash; and/or
• Costs for selling real property, such as settlement costs, real estate transaction fees, payment of mortgages/liens against the property and any legal fees associated with the sale of real property.

NOTE: If an asset is owned by more than one person, a PJ must prorate the asset according to the applicant's percentage of ownership. If no percentage is specified or provided by state or local law, PJs must prorate the asset evenly among all owners. If an asset is not effectively owned by an individual, it should not be counted as an asset in Part 5 annual income.