Is Disability Income Jeopardized by Investing in Real Estate

[Randi Del Gatto]

Hello-I suffer from a de-generative spinal disease and most likely will be receiving a federal disability in the future. I live in NC. Is it possible to have an entity for investment purposes if I am not drawing a salary but just building equity through a business? Perhaps an LLC or an SCorp. I would be using savings from the time I did work and am trying to grow it.

Any advice would be helpful because just like social security, I do not trust that disability money will be there long term for me and then what? 

Thank you in advance. 

[Cheryl Packham]

While by far the best thing to do is to discuss your status with the SSD office.  However, what I do know is that Social Security Disability Insurance looks at whether you can perform substantial  gainful activity. 

https://www.ssa.gov/redbook/eng/definedisability.h...

According to Social Security in regards to self employment [They] apply three tests to evaluate your work activity when you initially apply for SSDI and before you have received SSDI benefits for 24 months. [They] will also use the three tests to evaluate your work activity during the re-entitlement period to determine if we can reinstate your benefits in the Extended Period of Eligibility (EPE) (see EXTENDED PERIOD OF ELIGIBILITY). Your self-employment work activity is SGA if:

The Three Tests:

• You render significant services to the business, and you had average monthly earnings over the SGA level ($1,130 in 2016); or
• Your work is comparable to the work of persons without disability in your community engaged in the same or similar businesses; or
• Your work is worth more than the SGA level earnings in terms of its effects on the business or when compared to what you would have to pay an employee to do the work.

This should allow you to evaluate your own situation and determine if you are performing SGA in you business.