Net Pre-tax Income Requirement
To meet this criterion, an individual must have a net pre-tax income of more than $200,000 in each of the two most recent calendar years. Additionally, they are expected to have a net income exceeding $200,000 in the current calendar year.
Joint Pre-tax Net Income Requirement (with a spouse)
If filing taxes jointly with a spouse, the requirement changes slightly. The joint pre-tax net income should be $300,000 in each of the two most recent calendar years. Furthermore, the combined net income should be expected to exceed $300,000 in the current calendar year.
Financial Assets Requirement
An individual, either alone or with a spouse, must possess financial assets of at least $1 million before taxes, excluding the value of their primary residence. Financial assets include cash, bank deposits, stocks, bonds, and other securities.
Net Assets Requirement
The net assets requirement refers to the total assets, either individually or jointly with a spouse, excluding the primary residence's value. To qualify as an accredited investor, the net assets must amount to at least $5 million.