Assets and government benefits

amother

Olive

Tue, Dec 08 2015, 2:10 pm

How does it work to have savings and get government benefits?
We are students with very low income.
We are looking to sell our house before moving to another city . Will it mess us up if we have $100,000 in our account for a few months to a year until we buy again?

Miri7

Tue, Dec 08 2015, 6:58 pm

I would call an accountant about the profit. Ask about a 1031 exchange. That allows you (in certain circumstances) to not have the income on the sale of house #1 count as taxable income when you buy a second property with that money. There are a number of restrictions and requirements, so you definitely should talk with an accountant.

I don't know how the government programs work - if they would count the money only if it's taxable income, or if they would count it regardless of whether it's taxable. I would ask someone who works in public benefits. They will have information on what counts as "income."

nyer1

Tue, Dec 08 2015, 7:32 pm

can u just clarify your question?
are you trying to ask that if you have 100k in the bank, can you still qualify?

not to get too judgy but BOY. I don't have 100k in my bank.

amother

Dodgerblue

Tue, Dec 08 2015, 7:55 pm

Apparently you didn't read the question . They want to sell their house, of which they hope to get 100k for that and use that money to buy a new house.

Not saying they have spare 100k in the bank. Usually when one sells a house they immediately close on the new one so the money is just being transfered from old bank financing loan to new bank with new loan.

Now there will be a pause and they will have to hold onto the money for a few months

Orchid

Tue, Dec 08 2015, 8:24 pm

Miri7 wrote:

If this is their primary residence (and other basic set of criteria), there would be no reportable gain on the sale of their house under $500,000 anyway, so the OP need not be concerned about taxable income.

I agree where you wrote she should call the govt. agency. I think each agency has different rules and criteria they look at for their own programs. It's not like an IRS rule.

MagentaYenta

Tue, Dec 08 2015, 8:43 pm

Each state has different limits for liquid assets. You really need to check your states requirements. But the fact that you have access to these funds could eliminate you from benefits, if they are above your states limits.

amother

Periwinkle

Tue, Dec 08 2015, 8:57 pm

MagentaYenta wrote:

Depends on the program and the state. You can have a couple million in the bank and still qualify for programs.

amother

Olive

Wed, Dec 09 2015, 4:04 pm

nyer1 wrote:

can u just clarify your question?
are you trying to ask that if you have 100k in the bank, can you still qualify?

not to get too judgy but BOY. I don't have 100k in my bank.

We are looking to move to a different city where my DH was offered a job for next year.
We need to sell our house first in order to buy there.
We should have $100 K in profits after we pay off the mortgage which we hope to use as a down payment for a new house and not to use on day to day spending.
We hope to get off benefits after we get established with jobs.