Leasing Arrangements and Self-Employment (Social Security) Tax

Roger A McEowen ( August, 2014 )

Summary

Self-employment tax is imposed on net earnings derived from self-employment. However, rents from real estate and from personal property leased with real estate are excluded from the definition of net earnings from self-employment. An exception to this rule exists if the lessor leases land to an entity in which the lessor is materially participating. This publication addresses court cases and tests for material participation.

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Details

Publisher

Iowa State University

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1202

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Written Material