Do you agree with ChatGPT about the definition of net worth for non-accredited investors?

Here's my exchange with ChatGPT:

For purposes of calculating the amount a non-accredited investor may invest under Regulation Crowdfunding as governed by the 2012 Jumpstart Our Business Startups Act, net worth is used as a measure. For this purpose specifically, is the value of the investors' home and the associated mortgage (if any) included in the calculation? What sources could you suggest for confirming the answer?

Under Regulation Crowdfunding, which was established by Title III of the Jumpstart Our Business Startups (JOBS) Act of 2012, there are specific rules governing the amount non-accredited investors can invest. These rules take into account the investor's annual income and net worth to determine the investment limits.

When calculating net worth for the purposes of Regulation Crowdfunding, certain exclusions apply, similar to the rules for accredited investors defined by the SEC. Specifically:

Value of the Primary Residence: When calculating net worth, the value of the primary residence is not included. This is in line with the SEC's amendments to the net worth standard for accredited investors, which took effect after the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Mortgage and Other Debt Associated with the Primary Residence: While the value of the primary residence is excluded from the net worth calculation, debt secured by the residence up to its fair market value is also not included. However, if the mortgage or other debt secured by the residence exceeds the fair market value of the home, that excess amount must be considered as a liability in the net worth calculation.

For confirming these details and staying updated with any changes to the regulations, I recommend consulting the following sources:

The U.S. Securities and Exchange Commission (SEC) Website: The SEC's official website provides comprehensive information on Regulation Crowdfunding, including investor eligibility, investment limits, and how to calculate net worth.

Financial Industry Regulatory Authority (FINRA): FINRA oversees broker-dealers and funding portals involved in Regulation Crowdfunding. Their website offers guidance and educational resources related to crowdfunding and investor education.

Legal and Financial Advisors: Consulting with professionals who specialize in securities law and investment can provide personalized advice and ensure compliance with the current regulations.

SEC's Regulation Crowdfunding Rules: Reviewing the actual text of the rules (available on the SEC's website) can provide the most direct and detailed understanding of the requirements.

These sources should offer authoritative and up-to-date information regarding investment limits under Regulation Crowdfunding and how to calculate net worth for these purposes.