Is passive farm income subject to SE tax?
Passive investment income isn’t considered income from a trade or business in which the farmer is actively involved. Passive income therefore does not trigger SE tax.
How do I get a copy of Publication 17?
To get a copy, visit the IRS web site at www.irs.gov under the “Forms and Pubs” section. It can be accessed directly at ftp.fedworld.gov/pub/irs- pdf/p17. pdf. Or it can be ordered by calling 1-800-829-3676.
Where does CRP money come from?
CRP is a land conservation program administered by the Farm Service Agency (FSA). In exchange for a yearly rental payment, farmers enrolled in the program agree to remove environmentally sensitive land from agricultural production and plant species that will improve environmental health and quality.
How does CRP land work?
What does CRP mean in real estate?
Conservation Reserve Program
Every now and then a property placed into the Conservation Reserve Program (CRP) comes for sale on the market.
How much does CRP land pay Illinois?
In portions of Illinois, CRP rental rates approached $300 per acre. Meanwhile, across much of the Southwest and West, CRP rental rates were below $50 per acre, and were less than $20 per acre in portions of Texas, Arizona and New Mexico. The national average CRP rental rate was $82 per acre.
What is the ICR schedule for 2012 in Illinois?
2012 Schedule ICR Illinois Credits IL-1040 Schedule ICR (R-12/12) You must complete IL-1040 through Line 15 and Schedule CR, if applicable, before completing this schedule. The total amount of Illinois Property Tax Credit and K-12 Education Expense Credit cannot exceed tax. Only the Earned Income Credit may exceed tax. Read this information fi rst
What is ICR on form il-1040?
Schedule ICR, Illinois Credits, allows you to fi gure the total amount of property tax, K-12 education expense, and earned income credits you may claim on Form IL-1040, Individual Income Tax Return. What must I attach to Form IL-1040? If you enter an amount on Form IL-1040, Line 17 or Line 28, you
What is the 2012 schedule of credits for Illinois?
2012 Schedule ICR Illinois Credits IL-1040 Schedule ICR (R-12/12) You must complete IL-1040 through Line 15 and Schedule CR, if applicable, before completing this schedule. The total amount of Illinois Property Tax Credit and K-12 Education Expense Credit cannot exceed tax.
Are CRP payments subject to SE tax?
The CRP payments will therefore be classified as SE income and the farmer must report those payments as such and pay SE tax on those payments. The fact that the CRP contract refers to the payments as “rent” is immaterial. Farmers that receive CRP payments should consult their tax advisor on the proper reporting of these payments.