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there was no agreement to produce or actual production of
agricultural or horticultural commodities on the CRP land.
In determining whether compensation is includable in self-
employment income, sections 1401 and 1402 are to be construed
broadly so as to favor coverage for Social Security purposes.
Braddock v. Commissioner, 95 T.C. 639, 644 (1990). In order to
achieve this end, the rental exclusion is narrowly construed.
Johnson v. Commissioner, 60 T.C. 829, 833 (1973). In Delno v.
Celebrezze, 347 F.2d 159, 163 (9th Cir. 1965), the court
considered the parallel provision of the Social Security Act, ch.
531, tit. II, sec. 211 (1935), 42 U.S.C. sec. 411(a)(1994), as
added by Social Security Act Amendments of 1950, ch. 809, tit. I,
sec. 104(a), 64 Stat. 502, and stated:
The apparent intent of Congress was that section
211(a)(1)[42 U.S.C. sec. 411(a)] should be applied to
exclude only payments for use of space, and, by implication,
such services as are required to maintain the space in
condition for occupancy. If the owner performs additional
services of such substantial nature that compensation for
them can be said to constitute a material part of the
payment made by the tenant, the "rent" received then
consists in part of income attributable to the performance
of labor which is not incidental to the realization of
return from passive investment. In such circumstances, the
entire payment is to be included in computing the
recipient's "net earnings from self-employment."
Rent is ordinarily defined as compensation for the occupancy or
use of property. See Black's Law Dictionary 1297 (6th ed. 1990);
see also sec. 1.61-8(a), Income Tax Regs.
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