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Updated almost 8 years ago on . Most recent reply

How to take real estate income and not show it as earned income
I am considering taking my social security income early. I found there is an exception to the earnings amount limits I can make after taking social security when I receive income from rental rooms or apartments for social security purposes. However I must be able to not show the income as earned income, wages, or self employment. How can I do that? The helpful social security staff said it would need to come through an entity, corporation, ?
Thank you!
Most Popular Reply

Social Security only counts income earned from employment towards the Retirement Earnings Test. Other kinds of income; including income from rental properties, lawsuit payments, inheritances, pensions, investment dividends, IRA distributions and interest; will not cause benefits to be reduced.
http://www.aarp.org/work/social-security/question-...
Rental income you receive from real estate does not count for Social Security purposes unless:
A. You receive rental income in the course of your trade or business as a real estate dealer
B. Services are rendered primarily for the convenience of the occupant of the premises
C. In the case of farm rental income, you materially participate in the production or in the management of the production of farm commodities on land rented to someone else.
https://www.ssa.gov/OP_Home%2Fhandbook/handbook.12...
I didn't know the answer myself so I googled it.
I don't think it matters one way or another if the properties are owned personally, in a trust, or in an LLC.