When an individual converts an in-kind gift to cash, determine whether to count the
cash as income in the month of receipt of the converted funds based on whether the
gift met the criteria to exclude it under a different resource provision. If the gift
would not meet the criteria to exclude it under a different resource provision, count
the cash as income in the month of receipt of the converted funds. Consider as a countable
resource any funds retained into the month following the month of receipt.
Do not apply the $2000 income exclusion (SI 00830.750C.2.) to the converted funds.
EXCEPTION: As noted in SI 00830.750C.4. of this section, apply the income exclusion to the profits from the conversion
if other resource exclusions (i.e., auto exclusion, household goods, and personal
effects) would have applied to the gift that the individual converted to cash
EXAMPLE: In August 2010, a non-profit organization donates ownership of a timeshare to a child’s
payee (on the child’s behalf) with the intention that the payee could take the child
on vacation. The timeshare meets the definition of an in-kind gift. Do not count the
value of the timeshare ($15,000) as income to the child in the month the payee received
it on the child’s behalf (August 2010).
In December 2010, the payee sells the timeshare for $15,000 and uses the profits to pay off bills related
to the child's medical condition. Count the cash received from the sale as income
to the child in the month of conversion. If the payee retains the cash in the month
after the conversion (rather than paying off child’s the medical bills), count the
cash as a resource.
NOTE: Apply the infrequent or irregular income exclusion to the profits from the conversion
if they meet those provisions. (For infrequent or irregular income exclusion information
see SI 00810.410.)