Passive Income and applying for Social Security Disability
Passive income refers to income that takes little effort to both receive and maintain. The earner of the passive income will not directly participate materially in the business activities related to it. The most complicated situations arise when disabled individuals own their own businesses. Generally, these businesses tend to be small and closely held - sometimes solely within a family. This means that additional steps have to be taken to prove that any income realized from the business is truly passive. You should make sure that the business is sold to someone qualified to run it and be prepared to show that you are not still running the business. The contract of sale should include specific details about how and when payments will be made to you from the business, and what those payments represent. If this is not possible, it may be best to dissolve the business in order to avoid any issues with Social Security. Having a stream of passive income sh...