Selling property with disability

[Deesee]

Jurisdiction

Florida

Hello all,

I receive disability benefits after a spinal injury. Some 10 years back, I bought a piece of land I intended to make my residence, however that didn't work out. Today I was informed that selling the property would affect my disability benefits, which would cause a lot of harm, as I wanted to proceeds to go toward debt reduction.

In any case, it seems my options are limited. My question is, if I sold the house at cost (let's say what I bought it for, plus improvements made), would it affect my disability? I have family willing to buy it from me, if that's an option.

Thank you for any help you can provide!

 

[adjusterjack]

Today I was informed

Informed by who?

What kind of disability income?

SSDI, private disability policy, WC, something else?

 

[Deesee]

A family member, sadly under similar circumstances and ended up losing their benefits for some period of time, and maybe had to pay some back....the details given were a little murky, to be honest.

It is under SSDI.

 

[Tax Counsel]

It is under SSDI.

If that is the only benefit you are receiving then you should be good. Selling property does not disqualify you from Social Security disability payments. If are receiving any SSI, Medicare benefits, or any other benefit that is means tested, though, that's when the amount of income you have matters.

 

[Zigner]

Let's say that the government gives you $500 per month. Let's say that next month you get an extra $500 as a gift from your uncle. Why should the government give you $500 next month instead of you spending your own money?

EDIT: To be clear - I'm talking about needs-based programs.

 

[adjusterjack]

Let's say that the government gives you $500 per month. Let's say that next month you get an extra $500 as a gift from your uncle. Why should the government give you $500 next month instead of you spending your own money?

Because the government is kind and generous. LOL.

Remember the Covid stimulus checks and the extra unemployment money?

 

[Tax Counsel]

EDIT: To be clear - I'm talking about needs-based programs.

For extra clarity, SSDI is not one of those programs. SSDI will ding you for work related income, but not for sale of property that you have.

 

[Zigner]

For extra clarity, SSDI is not one of those programs. SSDI will ding you for work related income, but not for sale of property that you have.

Fair enough point

I was simply trying to point out that it's not unreasonable, generally speaking, for the government to reduce the benefits available if one brings in extra money.

 

[adjusterjack]

For extra clarity, SSDI is not one of those programs. SSDI will ding you for work related income, but not for sale of property that you have.

For extra, extra clarity SSDI allows a certain amount of earned income without any dinging.

For 2022 the SGA (Substantial Gainful Activity) limit is $1350 ($2260 for blind recipients) per month.