SSA logo: link to Social Security Online homeChapter 12: Net Earnings From Self-Employment

Table of Contents

NET EARNINGS FROM SELF-EMPLOYEMENT - GENERAL

1200. Net Earnings from Self-Employment
1201. Self-Employment Income
1202. What are gross business receipts?
1203. Are retirement payments received from partnerships included in net earnings?
1204. How is income credited when a partner dies?
1205. Deduction of Business Expenses
1206. Dividends on Stock and Interest on Bonds
1207. Is interest received by dealers counted as earnings?
1208. Is interest received by traders counted as earnings?
1209. Is interest received by a dealer/stockbroker counted as earnings?
1210. How is dividend and interest income calculated for partnerships?
1211. Are all gains and losses included in calculating earnings?
1212. What rental allowances must ministers include in net earnings?
1213. What rental income must be included in calculating earnings?
1214. Rent Received by Real Estate Dealers
1215. What items are counted as earnings for real estate brokers?

RENTAL INCOME - GENERAL

1216. Is rental income counted as earnings?
1217. Services Normally Provided by Landlords
1218. Services Provided for Convenience of the Occupant
1219. Are payments for parking lots, warehouses, and storage garages counted as earnings?
1220. Rental Income from Two or More Property Operations

RENTAL INCOME - FARM

1221. Does farm rental income count as net earnings?
1222. How is material participation established in a farm rental arrangement?
1223. How is material participation in farm production determined?
1224. What are the criteria for Test I: Financial Contribution, Periodic Inspection, and Consultation?
1225. What combination of activities is required to demonstrate material participation in farm rental agreements?
1226. What constitutes a “significant part” of production costs or equipment?
1227. Costs of Production
1228. Periodic Inspection of Production Activities
1229. Advice and Consultation
1230. What are the criteria for Test II: Decisions Affecting Success of Enterprise?
1231. Test III: 100 Hours of Work Over 5-Week Period
1232. If Tests I - III are not met, is material participation still possible?

OTHER METHODS OF COMPUTING EARNINGS

1233. Are other methods of computing net earnings for self-employment available?
1234. What is gross income for the optional method of reporting?
1235. Optional Method of Figuring Net Farm Earnings
1236. May grazing income be included in gross farm income?
1237. Is income from the sale of farm products grown in prior years included in gross farm income?
1238. Are federal agricultural program payments included in gross farm income?
1239. Is the landlord's share of a crop included in gross farm self-employment income?
1240. Income from the Sale of Timber
1241. Summary Table for Optional Methods of Computing Farm Self-Employment Income
1242. Optional Method of Computing Non-Farm Net Earnings
1243. Summary Table for Optional Methods of Computing Non-Farm Self-Employment Income
1244. Combining Farm and Non-Farm Net Earnings

OTHER INCOME

1245. Income of U.S. Citizen or Resident in Business Outside the U.S.
1246. Are exclusions in Section 911 of the Internal Revenue Code applicable to ministers outside the U.S.?