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Are all gains and losses included in calculating earnings?

Excerpted from "Social Security Handbook". See the up-to-date, official Social Security Handbook at ssa.gov.

1211. Are all gains and losses included in calculating earnings?

When calculating earnings for Social Security purposes, you can exclude gains or losses from the disposition of certain properties if you do any of the following:

  1. Sell or exchange a capital asset, except in the course of business of an options or commodities dealer;

  2. Cut timber or dispose of timber, coal or iron ore, even though held primarily for sale to customers, if section 631 of the Internal Revenue Code applies; or

  3. Sell, exchange, involuntarily convert or make other disposition of property that is not:

    1. Stock in trade or other property of a kind that would be included in inventory if it was on hand at the close of the taxable year; or

    2. Property held primarily for sale to customers in the ordinary course of business.

Last Revised: March, 2001

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Not affiliated with the US Social Security Administration