- 19 - to, and did, participate materially in the production by G.E. Johnson, Inc., of agricultural commodities by performing peti- tioners’ farm-related activities; and (2) an oral rental arrange- ment under which petitioners leased to G.E. Johnson, Inc., petitioners’ farmland and personal property. There were two identical types of arrangements involved in McNamara II. The issue presented here is whether the claimed rents at issue, reduced by the deductions attributable to such respective rents, are subject to self-employment tax because they constitute includible farm rental income under section 1402(a)(1). That was the identical issue presented in McNamara II. We conclude that McNamara II is squarely in point. Moreover, the court to which an appeal in this case would normally lie is the Court of Appeals for the Eighth Circuit. We shall follow McNamara II. Golsen v. Commissioner, supra. As required by McNamara II, we must determine whether there was a nexus between (1) the 1993 claimed rent, the 1994 claimed rent, and the modified 1995 claimed rent that petitioners re- ceived pursuant to the oral rental arrangement and (2) the oral employment arrangement under which petitioners were to, and did, participate materially in the production by G.E. Johnson, Inc., of agricultural commodities.13 In making that determination, we 13We note that in McNamara I there is no indication that the parties advanced, and the Court did not address, any argument (continued...)Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
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