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CRP payments for non farmer:

Forum|Forum|7 years ago
April 4, 2019
1 reply
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Are CRP payments subject to self employment tax for non farmer?

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IntuitCharlene

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The IRS has posted some FAQ's regarding this.

https://www.irs.gov/businesses/small-businesses-self-employed/conservation-reserve-program-annual-rental-payments-and-self-employment-tax

CRP “annual rental payments” may be includible in net income from self-employment for purposes of the self-employment tax

Unless the taxpayer is receiving Social Security retirement or disability benefits, CRP “annual rental payments” are includible in net income from self-employment subject to self-employment tax. Note: Payments that are for the permanent retirement of cropland base and allotment history are not includible in net income from self-employment subject to self-employment tax because they are for the sale of section 1231 property or a capital asset.

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CRP “annual rental payments” may be includible in net income from self-employment for purposes of the self-employment tax

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