I have a "what if",someone is receiving social security and receives money from the sale of a living parents house? This person and siblings names were on the deed, not the parent. How would this affect the monthly ss payment? If anyone out there has been in this situation please tell me how this is handled. Thanks

Not at all. When President Clinton was in office they changed things so that you could even work and receive full pay without a percentage being docked. Might affect your taxes at the end of the year though, as I would imagine that it is income.

Unless it is SSI which some call social security but it really isn't and is based on income etc

Jeri's answer is slightly off base. If you are not at your full retirement age when you receive the SS you will be docked if you work. Not sure how a capital gain is treated. If you are at your full retirement age then nothing affects the amount of SS you get. There may be an effect on your taxes however.

Oops...you're right. I did assume. Sorry. I was working when I reached 65 and remembered how nice it was for the next two years until I retired:-)

OOps..just had another thought. Isn't it an inheritance? Better check with the pros:-)

It wouldn't be an inheritance if their name was on the deed.

I would suppose it would depend on the value of the home when the deed was put into their name...if it is sold for more, than that is capital gains if I am not mistaken but Wendy can answer that far better than I...

Thanks everyone for your thoughts on this. I guess I will give ss office a call tomorrow to make sure.

I would suppose it would depend on the value of the home when the deed was put into their name...if it is sold for more, than that is capital gains if I am not mistaken but Wendy can answer that far better than I...

If the house was given as a gift the value of the home at that time is irrelevant. The owner's basis is the giver's basis which basically is what it was originally purchased for plus improvements. So if the house is sold for more than the cost it will be capital gain.

Oh Ok thanks for the correction and it could end up being a large capital gain depending on how long this house has been in the family...but if they are on regular SS that might help instead of SSI....