Tag Archive: "CRP"
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Morehouse Appeal is Released – Taxpayer Victory
The Eighth Circuit just released today the long-awaited appeals of the Rollin Morehouse Tax Court case that we have posted on previously. In the original Morehouse decision. the Tax Court found that essentially all CRP payments received, whether by a farmer or simply a landlord would be subject to self-employment tax. In today’s Eighth Circuit […]
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CRP in an S corporation?
We had a reader ask the following question in response to our posts on CRP payments being subject to SE tax: “What about CRP income that is earned by an S corp which only rents out farmland and also collects CRP income. Will that CRP income be subject to SE tax while the land rent […]
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Your CRP Income May Be Subject to SE Tax
In the Morehouse Tax Court case just issued yesterday, the court ruled that the receipt of CRP payments by a non-farmer are subject to self-employment taxes. The case involved a taxpayer located in Minnesota who inherited property in South Dakota and continued to invest in additional farm land in that state. At all times, the taxpayer never […]
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Challenges Facing CRP
With the 2008 farm act, substantial changes were made to the USDA Conservation Reserve Program (CRP). The major change was reducing the maximum enrollment acreage from about 37 million acres to 32 million acres which is about a 14% reduction in maximum acres. Also, during this period, a substantial increase in commodity prices took place […]
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Your CRP Payments May Not Be Subject to SE Taxes
For many years the IRS battled with taxpayers regarding whether Conservation Reserve Program (CRP) payments received by retired taxpayers were subject to self-employment taxes. The taxpayers argued that once a farmer is retired, the payments are simply rent payments and not subject to these taxes. The IRS countered that the payments are still subject to […]