Instructions For Schedule Se (Form 1040) - 2009 (Page 3 of 4) in pdf

earnings from self-employment. Read the

9. Interest received in the course of any

Share Farming

following instructions to see what to in-

trade or business, such as interest on notes

You are considered self-employed if you

clude as net earnings and how to fill in ei-

or accounts receivable.

produced crops or livestock on someone

ther Short or Long Schedule SE, lines 1a,

10. Fees and other payments received by

else’s land for a share of the crops or live-

1b, and 2. Enter all negative amounts in pa-

you for services as a director of a corpora-

stock produced (or a share of the proceeds

rentheses.

tion.

from the sale of them). This applies even if

11. Recapture amounts under sections

Line 1b (Short or Long

you paid another person (an agent) to do the

179 and 280F that you included in gross

actual work or management for you. Report

Schedule SE)

income because the business use of the

your net earnings for income tax purposes

property dropped to 50% or less. Do not

If you were receiving social security retire-

on Schedule F (Form 1040) and for SE tax

include amounts you recaptured on the dis-

ment or social security disability benefits at

purposes on Schedule SE. See Pub. 225 for

position of property. See Form 4797.

the time you received your Conservation

details.

Reserve Program (CRP) payment(s), enter

12. Fees you received as a professional

the amount of your taxable CRP

fiduciary. This may also apply to fees paid

Other Income and Losses

payment(s) on line 1b. These payments are

to you as a nonprofessional fiduciary if the

included on Schedule F, line 6b, or listed

Included in Net Earnings

fees relate to active participation in the op-

on Schedule K-1 (Form 1065), box 20,

eration of the estate’s business, or the man-

From Self-Employment

code Y.

agement of an estate that required extensive

management activities over a long period

1. Rental income from a farm if, as land-

of time.

lord, you materially participated in the pro-

duction or management of the production

13. Gain or loss from section 1256 con-

Net Earnings From

of farm products on this land. This income

tracts or related property by an options or

Self-Employment

is farm earnings. To determine whether you

commodities dealer in the normal course of

dealing in or trading section 1256 con-

materially participated in farm manage-

In most cases, net earnings include your net

tracts.

ment or production, do not consider the ac-

profit from a farm or nonfarm business. If

tivities of any agent who acted for you. The

you were a partner in a partnership, see the

material participation tests for landlords are

following instructions.

Income and Losses Not

explained in chapter 12 of Pub. 225.

Partnership Income or Loss

Included in Net Earnings

2. Cash or a payment-in-kind from the

Department of Agriculture for participating

From Self-Employment

If you were a general or limited partner in a

in a land diversion program.

partnership, include on line 1a or line 2,

1. Salaries, fees, etc., subject to social

whichever applies, the amount of net earn-

3. Payments for the use of rooms or

ings from self-employment from Schedule

security or Medicare tax that you received

other space when you also provided sub-

for performing services as an employee, in-

K-1 (Form 1065), box 14, code A, and

stantial services for the convenience of

cluding services performed as a public offi-

Schedule K-1 (Form 1065-B), box 9, code

your tenants. Examples are hotel rooms,

J1. General partners should reduce this

cial (except as a fee basis government

boarding houses, tourist camps or homes,

employee as explained in item 8 under

amount before entering it on Schedule SE

trailer parks, parking lots, warehouses, and

Other Income and Losses Included in Net

by any section 179 expense deduction

storage garages. See chapter 5 of Pub. 334

Earnings From Self-Employment on this

claimed, unreimbursed partnership ex-

for more information.

penses claimed, and depletion claimed on

page) or as an employee or employee repre-

4. Income from the retail sale of news-

sentative under the railroad retirement sys-

oil and gas properties. However, if you re-

papers and magazines if you were age 18 or

tem.

duce the amount you enter on Schedule SE,

older and kept the profits.

attach an explanation. See Partner’s In-

2. Fees received for services performed

5. Income you receive as a direct seller.

structions for Schedule K-1 (Form 1065)

as a notary public. If you had no other in-

Newspaper carriers or distributors of any

for details. Limited partners include only

come subject to SE tax, enter “Ex-

guaranteed payments for services actually

age are direct sellers if certain conditions

empt — Notary” on Form 1040, line 56; do

rendered to or on behalf of the partnership.

apply. See chapter 5 of Pub. 334 for details.

not file Schedule SE. However, if you had

other earnings of $400 or more subject to

6. Amounts received by current or for-

If a partner died and the partnership

SE tax, enter “Exempt — Notary” and the

mer self-employed insurance agents and

continued, include in self-employment in-

amount of your net profit as a notary public

salespersons that are:

come the deceased’s distributive share of

from Schedule C or Schedule C-EZ on the

the partnership’s ordinary income or loss

a. Paid after retirement but figured as a

dotted line to the left of Schedule SE, line

through the end of the month in which he or

percentage of commissions received from

3. Subtract that amount from the total of

she died. See section 1402(f).

the paying company before retirement,

lines 1a, 1b, and 2 and enter the result on

If you were married and both you and

b. Renewal commissions, or

line 3.

your spouse were partners in a partnership,

c. Deferred commissions paid after re-

3. Income you received as a retired part-

each of you must report your net earnings

ner under a written partnership plan that

tirement for sales made before retirement.

from self-employment from the partner-

provides for lifelong periodic retirement

However, certain termination payments re-

ship. Each of you must file a Schedule SE

payments if you had no other interest in the

ceived by former insurance salespersons

and report the partnership income or loss

partnership and did not perform services

are not included in net earnings from

on Schedule E (Form 1040), Part II, for in-

for it during the year.

self-employment (as explained in item 10

come tax purposes. If only one of you was a

4. Income from real estate rentals if you

under Income and Losses Not Included in

partner in a partnership, the spouse who

did not receive the income in the course of

Net Earnings From Self-Employment be-

was the partner must report his or her net

a trade or business as a real estate dealer.

ginning on this page).

earnings from self-employment from the

Report this income on Schedule E, or on

partnership.

7. Income of certain crew members of

Schedule C or C-EZ if you and your spouse

fishing vessels with crews of normally

made an election to be taxed as a qualified

Community income.

Your own distribu-

fewer than 10 people. See chapter 10 of

joint venture.

tive share of partnership income is included

Pub. 334 for details.

in figuring your net earnings from self-em-

5. Income from farm rentals (including

8. Fees as a state or local government

ployment. Unlike the division of that in-

rentals paid in crop shares) if, as landlord,

employee if you were paid only on a fee

come between spouses for figuring income

you did not materially participate in the

basis and the job was not covered under a

tax, no part of your share can be included in

production or management of the produc-

federal-state social security coverage

figuring your spouse’s net earnings from

tion of farm products on the land. See chap-

agreement.

self-employment.

ter 12 of Pub. 225 for details.

SE-3

Instructions For Schedule Se (Form 1040) - 2009 Page 3

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