Gains from selling personal property are counted as unearned income. See 0017.12.03 (Unearned Income).

Gains from selling business property is counted as self-employment income.

Capital Gains and Capital Losses result from the sale of business goods or equipment. A capital gain or loss is the difference between the amount the business paid for an asset and the amount received when that asset is sold.

Capital Assets are all types of property that are held by a company for investment and useful business purposes. Capital assets are those assets used by the business to make a profit. Most types of business property are considered capital assets, including:

●	Property for sale to customers, like inventory or merchandise.
●	Intellectual property, like patents, trademarks, or copyrights.
●	Accounts receivable or notes receivable; accounts receivable have value and can be sold, so they are considered assets.
●	Depreciable property (equipment and vehicles, for example) used in your business.
●	Real property (land and buildings) used in your business.

Capital losses are deducted on the tax return as a loss from self-employment businesses, which reduces the net profit. Capital losses from one self-employment business can be used to reduce total countable self-employment income from other businesses within the unit, within the same tax year.

Capital gains and losses recorded on self-employment tax forms, such as Schedules C and F, include items such as the sale of livestock or grain. You may not be able to distinguish capital gains on self-employment forms from other self-employment income.

The IRS Capital Gains and Losses form (Schedule D) includes excluded and counted capital gains. The client must clarify whether Schedule D capital gains are from the sale of an asset or from self-employment.

In addition to capital gains and losses from the sale of assets, Schedule D includes capital gain distributions. Capital gain distributions are dividends from stock or mutual funds. See 0017.15.42 (Interest and Dividend Income).

Use the tax form figures to verify the countable capital gain or allowable loss. If the client did not file tax forms, determine the capital gain using self-employment income procedures. See 0017.15.33 (Self-Employment Income).

Count the amount of capital gains or losses the household anticipates receiving during the months over which the income is being averaged.

When capital gains or losses are not accounted for in a specific business’ records it must be tracked separately on STAT/BUSI.


MFIP, SNAP, GA:
Follow general provisions.


MSA, HSP:
For SSI recipients no action is required, SSA makes all income determinations.

For non-SSI recipients follow GA.