IU P&T; What constitutes earned income?

[allansc2005]

Got a veteran who was just awarded IU P&T. She wants to get into the house flipping/house whole selling business, which of course doesn't require any physical activity.

 

Questions:

1. Is the income generated from flipping houses considered "earned" income? Yes, I know, this is more of an IRS question, but if you know the answer, please post it.

2. Does the VA only consider EARNED income when applying the IU P&T rules for employment?

Thanks

 

2-2-0 HUAH!!

[Buck52]

What about if its a family business? they are exceptions for that.

I don't have the provisions at hand but I do think an IU vet can work and makes so much in a family business  but flipping house business has its  profit and loss margins  so  depending on the sale of the property and profit margin & some times things don't get reported in this type business

because it take $$$ to make $$$

 

[Gastone]

If she reports on her yearly IU anniversary date 21-4140 that she has been employed (Self-Employed) for 12 Consecutive Months, earning in excess of $12,880 for the 12 month period, she can expect a full court press from the Rating Dept. If she's self-employed, what she reports as her Net Income will be the Earned Income figure she uses.

[allansc2005]

Thanks all for your input. I will pass on your wisdom to her, and encourage her to try and get 100% Scheduler(she's at 90% now), BEFORE she goes getting her feelings, and her wallet hurt!

 

Allan

2-2-0 HUAH!

[Gastone]

Then there's always the possibility she's not really IU any longer. Her ability to participate in Sedentary Employment doesn't seem questionable, to me.

Hypothetically, she could earn in excess of say $20k ($39-$50-$70+K) during the 12 month reporting period, however, find that she misses (2) complete months of work (during this same reporting period) due solely to her IU SCs and not be put up for an IU Reduction. The excessive Earned Income above the VA SGI would not come under scrutiny, her employment was limited to 10 consecutive/continuous months because of the IU SC caused loss of (2) months employment during the (12) month reporting period.

[brokensoldier244th]

EBenefits might have the form you need in there, too, then you can send it electronically with a time stamp

 

[allansc2005]

broncovet, thanks for the excellent answer and advice.

Will advise the veteran to call the IRS on Monday.

 

Allan

2-2-0 HUAH!