John P. & Teresa Hennen - Page 10




                                        - 10 -                                         

          there shall be material participation by the owner in the                    
          production or the management of the production of such                       
          agricultural commodities, and there is such material                         
          participation by the owner, then the rental income received by               
          the owner pursuant to the arrangement is considered earnings from            
          self-employment.  Sec. 1.1402(a)-4(b), Income Tax Regs.                      
          Accordingly, we find that the rental income is includable farm               
          rental income that is part of Mrs. Hennen's net earnings from                
          self-employment under section 1402(a)(1) for each of the taxable             
          years at issue.  This is the same conclusion we reached in a                 
          similar case, decided after this case was heard.  Bot v.                     
          Commissioner, T.C. Memo. 1999-256.                                           
               We have considered all of the arguments presented by the                
          parties, and, to the extent not discussed above, they are without            
          merit or not relevant.                                                       
               To reflect the foregoing,                                               
                                                   Decision will be entered            
                                              for respondent.                          
















Page:  Previous  1  2  3  4  5  6  7  8  9  10  

Last modified: May 25, 2011