Conservation Reserve Payments and Self-Employment Taxes

Description

Farmers enrolling their land in the Department of Agriculture's Conservation Reserve Program (CRP) receive payments for refraining from farming their property and for engaging in certain conservation practices mandated by the Department of Agriculture. These payments are described in the contract with the Department of Agriculture as "rental payments." Farmers would like to treat the income as "rental income" because it would not be subject to self-employment taxes, but the Internal Revenue Service (IRS) insists that under certain conditions, the payments are income from the trade or business of farming and thus subject to self-employment taxes.

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Morris, Marie B May 1, 2000.

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This report is part of the collection entitled: Congressional Research Service Reports and was provided by UNT Libraries Government Documents Department to Digital Library, a digital repository hosted by the UNT Libraries. It has been viewed 57 times . More information about this report can be viewed below.

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Description

Farmers enrolling their land in the Department of Agriculture's Conservation Reserve Program (CRP) receive payments for refraining from farming their property and for engaging in certain conservation practices mandated by the Department of Agriculture. These payments are described in the contract with the Department of Agriculture as "rental payments." Farmers would like to treat the income as "rental income" because it would not be subject to self-employment taxes, but the Internal Revenue Service (IRS) insists that under certain conditions, the payments are income from the trade or business of farming and thus subject to self-employment taxes.

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Congressional Research Service Reports

The Congressional Research Service (CRS) is the public policy research arm of Congress. This legislative branch agency works exclusively for Members of Congress, their committees and their staff. This collection includes CRS reports from the mid-1970's through the present--covering a variety of topics from agriculture to foreign policy to welfare.

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  • May 1, 2000

Added to The UNT Digital Library

  • June 10, 2005, 6:24 p.m.

Description Last Updated

  • Feb. 10, 2017, 12:31 p.m.

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Citations, Rights, Re-Use

Morris, Marie B. Conservation Reserve Payments and Self-Employment Taxes, report, May 1, 2000; Washington D.C.. (digital.library.unt.edu/ark:/67531/metacrs1066/: accessed February 26, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.