Question: My husband and I are both going to be 70 in 2015 and are currently receiving Social Security. My question is this: We have an opportunity to sell our rental home with a value of approximately $130,000. Would that affect the amount we currently receive from Social Security?
Answer: Since you are above full retirement age, your Social Security benefits aren’t affected directly by any source of income, including labor income. Also, since income from the sale of a rental home is not subject to Social Security tax, it would not increase the amount of your Social Security check. Your Social Security benefits are subject to federal income taxation. But unless the $130,000 represents a taxable capital gain, it won’t affect your adjusted gross income on which Social Security benefit taxation is predicated.
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