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Tdui And Capital Gains

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IraqVet

Question

I currently have TDUI pending a decision and I was wondering if Capital Gaines that I earn from stocks will make me loose TDUI if I do get approved for it? ie does Capital Gaines count as income or gainful employment by the VA?

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  • Content Curator/HadIt.com Elder

That's a good question

"If it's stupid but works, then it isn't stupid."
- From Murphy's Laws of Combat

Disclaimer: I am not a legal expert, so use at own risk and/or consult a qualified professional representative. Please refer to existing VA laws, regulations, and policies for the most up to date information.

 

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Investment income is income but should not count as gainful employment. However, I don't think investment income, employment pension income or SSI income would disqualify you from receiving TDIU. The VA is only considering if your service connected disabilities prevent you from maintaining substantial gainful employment. Others may disagree. JMO

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  • Moderator

investment income is not 'income' for SSDI or disability.

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(I AM NOT A RATER- I work the claims BEFORE they are rated, annotating medical evidence in your records, VA and Legal documents,  and DA/DD forms- basically a paralegal/vso/etc except that I also evaluate your records based on Caluza and try to justify and schedule the exams that you go to based on whether or not your records have enough in them to warrant those)

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Based on this document Capital Gains would not have an affect.

Disability Compensation benefits are considered to be an entitlement program and are not
means-tested. Veteran’s who have other types of income or who own resources will not lose
their entitlement to Disability Compensation benefits.

http://www.vcu-ntc.org/documents/benefitsvetsdisabilitiesoct08.pdf

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  • HadIt.com Elder

Any income you earn outside of working for the actual mnonies is called pasive income and it is not subject to the rules of the VA or the SSA.

J

A Veteran is a person who served this country. Treat them with respect.

A Disabled Veteran is a person who served this country and bears the scars of that service regardless of when or where they served.

Treat them with the upmost respect. I do. Rejection is not a sign of failure. Failure is not an option, Medical opinions and evidence wins claims. Trust in others is a virtue but you take the T out of Trust and you are left with Rust so be wise about who you are dealing with.

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  • HadIt.com Elder

I currently have TDUI pending a decision and I was wondering if Capital Gaines that I earn from stocks will make me loose TDUI if I do get approved for it? ie does Capital Gaines count as income or gainful employment by the VA?

If you work, in theory, you get a W2. Capitol gains and dividends, etc. generate a 1099.

It's also possible to work and get a 1099 if you are NOT a "statutory" employee.

The "flavor" of the 1099 is different from those related to investment income.

In fairly recent times, the IRS has discouraged the use of 1099s for non statutory employees.

(The non statutory employee usually ends up paying both parts of SSA deductions. A quirk in past laws

allowed many to avoid/evade at least part of the ssa payments)

In any case, investment income is not considered to be employment income.

It would come into play if a veteran's pension were to be involved.

The IRS also takes a dim view of "work for work" "in kind" arrangements.

They claim it's taxable income.

This is not legal or tax related advice. See the appropriate professional if you have such questions.

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