Question
What does rental income qualify as in regards to "extra income" and what financial records must I report to Reliance Standard?
My question regards LTD “income”. I have owned a rental house prior to my disability. The cost of the rent barely covers the mortgage and upkeep of the house and I take a loss every month. Is this considered “extra income” when I am in the hole rent check is to my living trust, which the house is deeded, where the beneficiaries are the actual holders of the trust? Does RSLI have the right to pull my tax returns? This shows as a loss annually. Does this need to be reported? I understand if I receive money from an outside source such as part time work that is a profit to me I need to report that, but what about the rent with no profit? Please advise.
Answer
John, rental income is normally considered passive income and not earned income (unless you are performing work duties that result in earned income for purposes of your taxes). Most policies only offset for specific enumerated “Other Income Benefits.” Anything outside the scope of those should be off limits to them.
