I'm receiving disability payments via Service Canada, topped up by private long term disability. I have an opportunity to sell a non-real estate, virtual asset worth about $9500, which is considerably more than Service Canada's annual "working" limit (though they mention nothing about asset sales. See here).
My private insurer also does not allow any "income or work for profit". I would not do any "work" in this case, aside from a few minutes to hand over the asset and deposit the cheque. (Side question: Could that be considered "work" by any reasonable interpretation? Are there any precedents for this sort of thing?) The asset is something I've owned for many years--long before I became disabled. However, it has appreciated in value significantly.
Are one-time asset sales normally classified as "income", or are those clauses simply put there to "reward" those who work (in a conventional sense) for profit while on disability?
I don't wish to do anything wrong, but I also don't want to sell my asset only to have to turn around and give most (or all!) of the money to the government (either CPP disability or income tax) and/or my private insurer.
Sorry for all the side questions. Here's the important one: What should I do to keep as much of the total proceeds as possible? If it helps I could invest the money (or at least most of it) in my RRSP. Not selling is an option if I would just have to give the money away.