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We must decide1 whether certain amounts (reduced by the
deductions attributable to such amounts) that petitioners re-
ceived during 1995 and that they characterized as rent are
subject to self-employment tax under section 1402(a)(1).2 We
hold that they are.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found
except as discussed below.
At the time petitioners filed the petition in this case,
they resided in Hancock, Minnesota.
In 1968, Jere J. Solvie (Mr. Solvie) began farming. In
1970, Paulette M. Solvie (Ms. Solvie) began farming with Mr.
Solvie. Prior to 1991, petitioners farmed 928 acres of land, 415
acres of which they owned. Third parties owned the remaining 513
acres.3
1In addition to the issue that we address herein, there is
another determination in the notice of deficiency (notice) for
1995 that is computational in that its resolution flows automati-
cally from our resolution of that issue.
2All section references are to the Internal Revenue Code in
effect for 1995. All Rule references are to the Tax Court Rules
of Practice and Procedure.
3The parties stipulated that petitioners farmed 928 acres of
land, 415 acres of which they owned and 531 acres of which third
parties owned. That stipulation insofar as it pertains to the
number of acres that third parties owned is clearly contrary to
the record in the instant case, and we shall disregard that
stipulation to that extent. See Cal-Maine Foods, Inc. v. Commis-
sioner, 93 T.C. 181, 195 (1989). On brief, respondent acknowl-
(continued...)
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