# 1 Tex. Admin. Code § 358.322: 1 TAC § 358.322. Conversion of Resources, DIVISION 2. RESOURCES

> Texas · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T1_P15_C358_S358_322

## Section

- **Citation:** 1 Tex. Admin. Code § 358.322
- **Heading:** 1 TAC § 358.322. Conversion of Resources, DIVISION 2. RESOURCES
- **Jurisdiction:** Texas
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Texas Administrative Code / Title 1 ADMINISTRATION / Part 15 TEXAS HEALTH AND HUMAN SERVICES COMMISSION / Chapter 358 MEDICAID ELIGIBILITY FOR THE ELDERLY AND PEOPLE WITH DISABILITIES / 1 TAC § 358.322

## Text

If a person converts one type of resource to another, the new resource is counted according to the policy governing that type of resource. Cash received from the sale of a resource is counted as a resource, not as income. This includes proceeds from the sale of a natural resource, such as cutting timber from the person's home property and selling it as firewood, except as follows:
(1) If the owner leases the land or resource rights, the income received from the lease is unearned income.
(2) If the sale of the natural resource is part of the person's trade or business, the income received is self-employment income.

## Nearby sections

- [1 Tex. Admin. Code § 358.301 1 TAC § 358.301. Purpose and Scope, DIVISION 1. INTRODUCTION](https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T1_P15_C358_S358_301.md)
- [1 Tex. Admin. Code § 358.321 1 TAC § 358.321. General Treatment of Resources, DIVISION 2. RESOURCES](https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T1_P15_C358_S358_321.md)
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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T1_P15_C358_S358_322. Check the current official text before relying on it. Not legal advice.