Accredited Investor Investment Inquiry
With regards to the accredited investor question, please see the definition below for more details.
Definition of Accredited Investor
An accredited investor is an individual who meets at least one of the following two requirements:
1) An individual with a net worth* or combined net worth* with his or her spouse that exceeds $1,000,000;
2) An individual whose income**, exclusive of any income attributable to his or her spouse, was in excess of $200,000 for the two most recent calendar years preceding the current calendar year, and who reasonably expects an income**, exclusive of any income attributable to his or her spouse, in excess of $200,000 in the current calendar year; and/or an individual whose combined income** with his or her spouse was in excess of $300,000 for the two most recent calendar years preceding the current calendar year and who reasonably expects a combined income** in excess of $300,000 in the current calendar year.
* For the purposes of the definition above, the term “net worth” means the excess of total value (including home furnishings and automobiles at fair market value BUT NOT including the value of your principle residence) over total liabilities. In computing net worth, the fair market value of the principal residence of the individual shall be valued at cost, including cost of improvements, or at recently appraised value by an institutional lender making a secured loan, net of encumbrances.
** For the purposes of the definition above, income is determined by adding to the individual’s adjusted gross income any amounts attributable to tax exempt income received, losses claimed as a limited partner in any limited partnership, deductions or claims for depletion, contributions to an IRA or Keogh retirement plan, alimony payments and any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income.