Do I Have to Claim Income if I Am Selling Property on a Land Contract?

Regardless of how the title is set up, the home must be your primary residence if you want it to be excluded in the Social Security Administration asset evaluation for your Supplemental Security Income eligibility. An SSI recipient can have only one home. Also, if you left due to domestic violence or if the people left behind would suffer severe financial hardship if the house were sold, the Social Security Administration will allow continued exclusion.

Whether it is exploring better ways to find a mortgage, stage a home, or get creative in buying and selling, she is up to the challenge of mastering it and writing about it. What Do I Do if My House Is in My Grandparents' Name & They Are Deceased? If you own more than one home, the Social Security Administration will want proof of which one to count as your primary residence.

If you meet the criteria, Social Security Administration will exclude it as an asset. Jane Amar received a Bachelor of Arts in Spanish language and literature from the University of California in Riverside in 1970. Actually, they both are true under certain circumstances.

Homes are not just buildings on land -- they can include mobile homes, motor homes or homes on water such as boats or houseboats. She must sign a written agreement with Social Security to sell the extra home for its fair market value and refund the conditional payments received to the SSA when the property sells. Cash or non-cash inheritances are income for SSI purposes, at the point the recipient has access to it, such as when the estate is settled. In addition, the home must be your primary place of residence. (In this case, however, the SSA might consider the use of the mobile home as “in-kind support and maintenance” if you're not paying rent.). Learn more about what happens if You Inherit a House or Someone gives you a house “Can I buy my own gifts?” No. If you have any other evidence such as bills showing that you paid for additions or repairs to the home or you made mortgage payments, you should provide those as well. If you own land on which your home is located that is divided up by another person’s property, only the value of the land on which your home actually sits will be excluded. The program is administered by the Social Security Administration (SSA) but is separate from Social …

There are several ways to prove you own the house. My mother died without a will and left a house worth between $76-$90,000 or so with two mortgages totaling $55,000 or so to me and my sister. But you have also heard that people on Supplemental Security Income own houses, worth many times more than those amounts.

The attorney listings on this site are paid attorney advertising. Both scenarios are allowed.

Can You Inherit Your Own Home & Still Receive SSI Benefits?. A recipient’s residence such as the home he owns does not count as a resource for SSI purposes.

Adjusted Gross Income Limitations for Rental Mortgage Interest. “other circumstances” (such as damage to your home). This is is called the "home exclusion.". The Social Security Administration expects you to provide all evidence that your home should be excluded. You will need to provide a statement of support from the person with whom you have the equitable ownership. Since 2007 she has written online content in English and Spanish for profit and nonprofit services and individual entrepreneurs. Your principal place of residence is the house you live in that you consider as the primary place you live (where you go back to stay on a regular basis).

SSI applicants or recipients who claim equitable ownership will have their case reviewed by the SSA’s Regional Counsel. which address you use for your mailing address or for tax reasons.

Selling the home would cause undue hardship because the co-owner would lose his or her place to live. A catch-22 to buying a house while you are on Supplemental Security Income is that in order to have enough money for a down payment and closing, you probably have more assets than you are allowed to have on Supplemental Security Income.

However, there are a couple of weird situations where your house or all of your land might not be excluded from your income: Even if you live in a home you don’t own, if you own the land the home is located on, the land may be excluded.

How Not to Lose SSI when Inheriting a House Jointly with Sister My husband and I are SSI recipients. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. Your home can be a mobile home, a houseboat or a traditional brick-and-mortar house. Reply. Property tax bills with your name will also provide evidence, as well as your property tax assessment.

Unless you own more than one home the SSA, will assume that the property is your principal place of residence. The Regional Counsel will give an opinion about whether the equitable ownership exists. If a recipient inherits a home but already owns one that she can sell for more than the resource limit, benefits stop. © Copyright 2020 Hearst Communications, Inc. The SSA may still allow you the home exclusion if you have to leave your home but can't return to it for reasons beyond your control. Receiving SSI and inheritance money at the same time may not be allowed, depending on the amount you have inherited.

You might have heard that the Social Security Administration does not allow you to have more than $2,000 in assets as a single person or more than $3,000 as a married couple to qualify for Supplemental Security Income. In this circumstance, the SSA will make a decision based on your statement of whether you intend to return to the home and will not take into account the following factors: Mr. Anthony was n 85 year-old man who was hospitalized in the intensive care unit.

To … An example of this is if you live in a mobile home that someone else owns, but the mobile home is located on land that you own. The home must be the permanent residence -- the recipient cannot have two homes such as one for winter months and one for summer months.

The SSA doesn’t consider the value of the home when determining whether the home will be excluded; the entire value of your house will be excluded.

However, there are a few exceptions to that rule. correct that your inheritance may affect your eligibility for SSI/SSDI and/or Medi-Cal/Medicare. It is worth it, however, to be able to own the home and continue receiving your benefits. You can bring in current mortgage statements that have your name listed as the owner. It doesn’t matter who you own the land with or how the ownership is titled (tenants-in-common, tenants by the entirety, or as joint tenants). (.

In most cases, if you leave your home for good, it will no longer be excluded as one of your assets, with a few exceptions. Being on Supplemental Security Income can be a financial tightrope, but the good news is you do not have to give up your home. The good news is that the value of your home does not matter at all – it will be excluded no matter its worth. However, the recipient can continue to receive benefits despite exceeding the resource limit if she requests conditional benefits. You will need to buy one through a low or no down payment program or sell your current primary residence to use it to buy the next one.

Under some circumstances, even if you leave the home and don’t intend to return, the SSA will still allow the value of your home to be excluded from your assets.

His doctor advised him that he may not be able to go back home even after discharge from the ICU but might be required to move into a nursing home facility. For 2010 and 2011 the most income chargeable upon inheriting a residence is $244 for an individual and $357 if husband and wife inherit together. As long as you meet the criteria, you should be able to buy and own a house. Do Not Sell My Personal Information. If the house was left to you as an inheritance, you need to produce the will or other documents that show this is true. The Social Security Administration will consider it your home if you are the only one on the title, share the title with another person or are not on the title but can show that you pay the mortgage on the home. This can happen if, for example, you are hospitalized or your home is damaged.

If you want to talk to someone in person, you can go to your local Social Security field office. To be eligible for benefits in a month, recipients' resources cannot exceed $2,000 for an individual or $3,000 combined for a married couple as of the first day of the month. For example, if you have 20 total acres, but it is divided into some land owned by another person, the only part you can exclude is the tract your house is on.

The value of the remaining eight acres will be included when the SSA determines your assets. If my inherit a house and I am on SSI would that be taken for me upon my death or can I leave it to a son.

Brand X Pictures/Brand X Pictures/Getty Images. Even though the Mr. Smith probably would be unable to return to his home, his statement about his “intent to return” satisfied the SSA’s requirements and his entitlement to the home exclusion continued.

Depending on their circumstances, individuals who receive Supplemental Security Income benefits can own homes without losing benefits. done anything that would make the home no longer excludable (like turning it into a rental property). In some states, the information on this website may be considered a lawyer referral service. You have to leave house due to domestic violence and you haven’t: set up a new principal place of residence, or.

Effective the month after the month the residence is inherited, it becomes an excluded resource.

The dollar value of the resource is the amount the owner would receive for the property after all selling costs – its equity value. You may have equitable ownership if you help pay the mortgage, do the work to make improvements to the home (such as room additions), or pay to make improvements to the home.