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Home / Opinions / Courts / 8th U.S. Circuit Court of Appeals / Administrative : Income – Self Employment – Agriculture Program

Administrative : Income – Self Employment – Agriculture Program

Where a taxpayer received payments from a government conservation reserve program and listed the payments as rents received, and the commissioner notified the taxpayer that the payments should have been taxed as self-employment income, the judgment is reversed because the appellate court finds that such payments to non-farmers constitutes rentals from real estate and are excluded from the self-employment tax.


Net earnings

Dissenting opinion by Gruender, J.: “Because the CRP payments to Morehouse were net earnings from self employment under § 1402(a) and were not rentals from real estate under § 1402(a)(1), I would affirm the Tax Court’s judgment. I therefore respectfully dissent.”

Judgment is reversed.

Morehouse v. Commissioner (MLW No. 67025/Case No. 13-3110 – 16 pages) (U.S Court of Appeals, 8th Circuit, Beam, J.) Appealed from U.S. Tax Court (Natalie Ingraham Wyatt-Brown, Minneapolis, argued for appellant) (Marion E.M. Erickson, Washington, D.C., argued for appellee).

Read the full text of this opinion. (PDF)