Ask Larry

Will I Lose My Disability Benefits If I Earn Money From Selling Real Estate?

i am on Perm disability but hold a real estate license, if earn $$ from selling real estate will i lose my perm benefits, is there a way of not losing benefits through an llc maybe?

Hi. It's certainly possible for Social Security disability benefits to be suspended or terminated if the disabled individual returns to work, but whether or not that would happen in your case depends on how much you work and earn. You would generally need to perform what Social Security defines as substantial gainful activity (SGA) in order to lose your disability benefits. The current (i.e. 2022) monthly SGA earnings amount for non-blind individuals is $1350.

Creating a limited liability corporation (LLC) wouldn't change the nature of your income as far as Social Security regulations are concerned. If you produce income that Social Security considers to be earnings, that could affect your eligibility for disability benefits even you use an LLC to you report the income as something other than earned income.

The exact effect that selling real estate might have on your benefits depends on a number of variables, so I would suggest that you read the following Social Security publication for more information: https://www.ssa.gov/pubs/EN-05-10095.pdf.

Best, Jerry

Posted: 
Feb 6 2022 - 12:56pm
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