330-4         ITEMS THAT ARE NOT INCOME

• Conversion or sale of a resource.  Cash or property received from the sale, exchange, or replacement of a resource is not income but is a resource that has changed its form.   

• Reverse Mortgages.  A reverse mortgage is a loan that must be paid back at the end of the agreement.

• Cash or in-kind item that is provided to replace or repair a resource that has been lost, stolen or damaged.

• Property Agreement.  The principle received by the holder of the agreement is considered a converted resource.  Only the interest received is countable income.

Example:

A Senior Benefits applicant sold her trailer for $5000.  The purchaser pays $500 to the bank which goes into an escrow account.  The bank, in turn, sends a payment to the applicant as follows:

Payor fee: $0
Late Charge: $0
Interest: $206.54
Principle: $293.46
Payee Fee: $0
Check Fee: $2.50
The countable income is $204.04 ($206.54 interest - $2.50 check fee)