tdiu What is work?

[wablackwell]

Hello, Just wondering what I can do and what I can not do if my TDIU claim is approved. Does property investments count as work? If I buy and fix cheap houses and then sell for a profit would this be allowed or does it count as work. Same question about buying and selling cars for a profit, is this allow. Also I have a buddy that is 100 percent P&T and he claims he not even allowed to take college classes. Is this true? Any body that has input on this topic would be great. Thanks Bill.

[broncovet]

The IRS differntiates between investment income and EArned income, and I would presume VA would follow suit.  

If you INVEST in a business and do not show up on site to manage it or work on it, then that would be investment income.  

However, if you invest in the business, then go buy paint, and paint the walls, kick out the bad tennants, and repair the leaky toilets, then this is likely earned income.  

Think of it kinda like buying a stock.  The investor does not manage the business.  He doesnt repair the company's toilets, paint the building, or hire/fire employees.  He buys the stock and waits for a dividend check.  

If you bought a home, hired a contractor to paint, maintain, collect rent, and evict tennants, then this would likely be passive investment income.  However, if you are knocking on tennats doors collecting the rent and you are maintaining the building, IRS and VA will likely say that is "earned income" not "investment income".  

You can recieve investment income while collecting VA beneifts.  But EARNED income is something else.   

[ItChief67]

I'd like to weigh in  "TDIU stands for "unemployablity" as Broncovet descibed it. But when you're on TDIU you can't go and apply for any job nor can you have additional income from any other sources outside of what the VA provides. You can apply for your SSDI or apply for Combat Related Special Compensation (CRSC) if you were in a combat zone.But if your service connected conditions render you unemployable and you get TDIU just make sure that you can live on what your getting. There is no threshold on income because your saying to the VA that you can't work. If by chance your PTSD gets raised to 70% or higher then it shows that the mental state does not allow for work or school.

Edited April 13, 2016 by ItChief67