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arrangement that requires the material participation of the
owner or tenant in the production or management of the
agricultural or horticultural commodities on the rented
land. Section 1402(a)(1) provides that in computing the
income to be included in “net earnings from self-
employment”:
there shall be excluded rentals from real estate
and from personal property leased with the real
estate (including such rentals paid in crop
shares) together with the deductions attributable
thereto, unless such rentals are received in the
course of a trade or business as a real estate
dealer; except that the preceding provisions of
this paragraph shall not apply to any income
derived by the owner or tenant of land if (A) such
income is derived under an arrangement, between
the owner or tenant and another individual, which
provides that such other individual shall produce
agricultural or horticultural commodities
(including livestock, bees, poultry, and fur-
bearing animals and wildlife) on such land, and
that there shall be material participation by the
owner or tenant (as determined without regard to
any activities of an agent of such owner or
tenant) in the production or management of the
production of such agricultural or horticultural
commodities, and (B) there is material participa-
tion by the owner or tenant (as determined without
regard to any activities of an agent of such owner
or tenant) with regard to any such agricultural or
horticultural commodity * * *
Petitioners filed a petition for redetermination of the
deficiencies determined by respondent. While the case was
pending, petitioners mailed a document purporting to be a
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