Distinguishing Resources from Income

Distinguishing Resources from Income. A. If an individual sells, exchanges, or replaces a resource, what he receives in return is not income; rather, it is a different form of resource. B. In order to distinguish resources from income, a determination must be on what has occurred and the monetary gain. C. The monetary gain would be considered a resource when it: 1. Was an increase in value of an existing resource; 2. Was for the receipt or replacement of a resource; 3. Was from the conversion or sale of a resource; or 4. Was a cash or in-kind item for the replacement or repair of an excluded resource which is lost, damaged or stolen. (This is discussed further later in this chapter.) D. Dividends and interest are defined as returns on investments, stocks, bonds, and savings accounts, etc. Refer to the income section for handling.