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received pursuant to the modified oral rental arrangement and
(2) the oral employment arrangement under which petitioners were
to, and did, participate materially in the production by JJ & P
Farms, Inc., of agricultural commodities by performing petition-
ers’ farm-related activities with respect to, inter alia, pro-
cessing hogs through that barn. On that record, we further find
that petitioners have failed to show that the 1995 claimed rent
for petitioners’ 800-head capacity hog barn was not derived under
an arrangement within the meaning of section 1402(a)(1)(A) and
section 1.1402(a)-4(b)(2), Income Tax Regs., between petitioners
and JJ & P Farms, Inc., which provided or contemplated, inter
alia, that that company was to produce agricultural commodities
in that barn and that petitioners were to participate materially
in the production of such commodities by processing hogs through
that barn. On the record before us, we hold that petitioners
have failed to establish that the 1995 claimed rent for petition-
ers’ 800-head capacity hog barn, reduced by the deductions
attributable to such rent, is not subject to self-employment tax
because it does not constitute includible farm rental income and
therefore is not net earnings from self-employment under section
1402(a)(1).
We have considered all of the contentions and arguments of
the parties that are not discussed herein, and we find them to be
without merit, irrelevant, and/or moot.
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