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queenofgreen
Jan 13, 2007, 10:52 AM
I collect SS, withdraw interest income monthly and sell real estate.

I am wondering since my interest income & real estate commissions exceed the
SS allowable income cap of $12,000 [I think] will my SS for the next year be reduced?

Will my real estate expenses be deductible from taxes owed on my interest income?
Will I owe tax on my SS?

Thanks so much.
AtlantaTaxExpert
Jan 15, 2007, 10:27 AM
I believe the cap was removed several years ago for those over the age of 65. That cap should apply only if you are not yet 65, and only on earned income; the interest should make no difference.

If your real estate business expenses exceed your income, then, yes, they can be deducted from your interest income.

If your real estate sales income exceeds a certain amount, then your SS benefits become taxable.