Charity/non Service Connection

[Rebecca]

B) I am considered 100% non service connect disabled due to complications from being in VA weight loss study-have been trying to switch to tort or service connect? Want to sell my home to move closer to VA hospital.Will lose non service connect for year because I will have money from sale of house-even if I put it into another house.Also just inherited $5,000 from 107 year old great aunt-will take that money,deduct it from my pension so I get no benefit.Talk about feeling like a charity case,I might as well mail the VA the check!! Can't figure out 1 reason to cash check-will only get penalized.Tomorrow I ride the DAV van for 4 hours for a DR's appt.Guess I don't move and check can sit in a drawer.Arrgh-gotta love the system.

[LarryJ]

Well, like my old Grandaddy used to say: "There's more than one way to skin that cat!"

That always did upset me when he said it, but he assured me that he wasn't into cat skinnin, so I accepted it.

Anywho, if I'm not mistaken, there is a one-time sale of your home that doesn't count as income, from the IRS. Y'all correct me if I'm wrong, okay?

And, take the $5K and put it into a fund.

Then you're clear with the IRS, and this money won't show up as taxable income.

Semper Fi!

[john999]

Just don't sign any income statements under oath if you are not sure that you are in the right. That thing about the sale of the house if all the money goes into a new house is really hard. The IRS won't tax it. That does not mean the VA does not consider it income. I know because IRS taxes part of my SSD due to tax-free income from municipal bonds. Just be sure you know exactly what the rules are.

[Pete53]

If you were injured in any way by the VA and they have you on a non service connected basis you should file an 1151 clim and if you win they will have to service connect you at the rate you are entitled to and that should be 100% in my opinion.

Good Luck

[Rockhound]

As to one time sale of your home not taxable. only if the new home is of equal or more in value as the old. Also if you have capital gains on your home, making more on the sale than you paid for it. Say you paid 100,000 and sold it for 200,000 then you have a capital gain of 100,000. I don't know how much of the 100,000 you have to declare, but I think it is about as much as if it were taxable, about 1/3rd I think, but don't quote me.

If I were you, I would file the 1151 claim and follow it to the end before I sale my home. If you win you 1151 calim, then if you sale your home and buy a new one, then you only have to worry about if you pay the same or more for your new home and of course, capital gains.

I'm in a similiar position, but I just want to sale my home and move into a motorhome. The motorhome would be my new home, but it more than likely will cost me less than what I paid for my home and the sale of my home will net me more than what I paid for it by about 1/2 again as much and that mean capital gains comes out of my sales price.

I hope all this makes since.

Rockhound Rider B)