ptsd Tdiu And Llc Income

[TJ Palmer]

I was granted 70% disability (PTSD) with 100% TDIU a couple years ago. I received a rather nice lump sum and recently helped my brother to start his septic business by providing some cash for him to purchase his truck. Even though it is registered as a Single Entity LLC I understand from what I have read that the profits (if any) are distributed equally between all members.

I thought, since I wasn't working that it would not be a problems but from what I have read so far in this forum, it seems that there is a possibility to exceed the federal poverty level. I don't want to jeopardize my TDIU as even with medication and counseling I still have problems sleeping and keeping focused.

If an LLC would cause a problem for my benefits, would it be viewed differently if my brother elected to have his LLC taxed as a C Corporation in which case any income would be regarded as dividends?

As a last resort, I suppose I could convert the investment into a loan to the LLC but I really hate to do that because I don't trust that congress might change VA laws and I suddenly find myself with no income.

[jbasser]

To avoid taxes. consider the monies youy gave as a loan to the LLC and you are paying yourself back.

You may want to discuss with a CPA also.

We do it all the time.

J

[deanbrt]

I think the key is to not do anything that would generate a 1099.