MJG CPA Posted February 28, 2008 Report Posted February 28, 2008 84-year-old farmer hires all farm work done, but not for crop shares or anything like that. He owns the land, pays all input costs, and receives all proceeds from crop sales... but does none of the work himself. Seems more like a passive activity, but as schedule F, he is paying a good chunk of self-employment tax. Is there ANY way this could be considered a farm rental? Creative ideas please!! Quote
zeke Posted February 28, 2008 Report Posted February 28, 2008 Not enough data. Does he live on the farm?? SS is very picky about their "inspection" parameter. If he lives on the farm, he is considered to be "inspecting" the crop and therefor actively participating. Creative thoughts? He could move. He could cash rent. Quote
MJG CPA Posted February 28, 2008 Author Report Posted February 28, 2008 Yes, he does live on the farm, but at 84, I would question active participation. I realize he could structure it differently, but what's that old saying about old dogs and new tricks? Is there any support that would allow this NOT to be self-employment income? Quote
zeke Posted February 28, 2008 Report Posted February 28, 2008 Under the facts as given, I have to consider him self employed. Look on the bright side - he could be maintaining a valuable 2032A election by his executor. Quote
MJG CPA Posted February 28, 2008 Author Report Posted February 28, 2008 I appreciate your replies. Quote
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