2010 Instruction 1040 Schedule Se (Form 1040) (Page 4 of 5) in pdf

figuring your spouse’s net earnings from

8. Fees as a state or local government

made an election to be taxed as a qualified

joint venture.

self-employment.

employee if you were paid only on a fee

basis and the job was not covered under a

5. Income from farm rentals (including

federal-state social security coverage

Share Farming

rentals paid in crop shares) if, as landlord,

agreement.

you did not materially participate in the

You are considered self-employed if you

production or management of the produc-

9. Interest received in the course of any

produced crops or livestock on someone

tion of farm products on the land. See chap-

trade or business, such as interest on notes

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

ter 12 of Pub. 225 for details. Report this

or accounts receivable.

stock produced (or a share of the proceeds

income on Form 4835. Use two Forms

10. Fees and other payments received by

from the sale of them). This applies even if

4835 if you and your spouse made an elec-

you for services as a director of a corpora-

you paid another person (an agent) to do the

tion to be taxed as a qualified joint venture.

tion.

actual work or management for you. Report

6. Payments you receive from the Con-

11. Recapture amounts under sections

your net earnings for income tax purposes

servation Reserve Program if you are re-

179 and 280F that you included in gross

on Schedule F (Form 1040) and for SE tax

ceiving social security benefits for

income because the business use of the

purposes on Schedule SE. See Pub. 225 for

retirement or disability. Deduct these pay-

property dropped to 50% or less. Do not

details.

ments on line 1b of Schedule SE.

include amounts you recaptured on the dis-

7. Dividends on shares of stock and in-

position of property. See Form 4797.

Other Income and Losses

terest on bonds, notes, etc., if you did not

12. Fees you received as a professional

Included in Net Earnings

receive the income in the course of your

fiduciary. This may also apply to fees paid

From Self-Employment

trade or business as a dealer in stocks or

to you as a nonprofessional fiduciary if the

securities.

fees relate to active participation in the op-

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

8. Gain or loss from:

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

lord, you materially participated in the pro-

agement of an estate that required extensive

duction or management of the production

a. The sale or exchange of a capital as-

management activities over a long period

of farm products on this land. This income

set;

of time.

is farm earnings. To determine whether you

b. The sale, exchange, involuntary con-

materially participated in farm manage-

13. Gain or loss from section 1256 con-

version, or other disposition of property un-

ment or production, do not consider the ac-

tracts or related property by an options or

less the property is stock in trade or other

commodities dealer in the normal course of

tivities of any agent who acted for you. The

property that would be includible in inven-

dealing in or trading section 1256 con-

material participation tests for landlords are

tory, or held primarily for sale to customers

explained in chapter 12 of Pub. 225.

tracts.

in the ordinary course of the business; or

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

c. Certain transactions in timber, coal,

Department of Agriculture for participating

Income and Losses Not

or domestic iron ore.

in a land diversion program.

Included in Net Earnings

9. Net operating losses from other years.

3. Payments for the use of rooms or

From Self-Employment

10. Termination payments you received

other space when you also provided sub-

as a former insurance salesperson if all of

stantial services for the convenience of

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

the following conditions are met.

your tenants. Examples are hotel rooms,

security or Medicare tax that you received

boarding houses, tourist camps or homes,

a. The payment was received from an

for performing services as an employee, in-

trailer parks, parking lots, warehouses, and

insurance company because of services you

cluding services performed as an employee

storage garages. See chapter 5 of Pub. 334

performed as an insurance salesperson for

under the railroad retirement system. This

for more information.

the company.

includes services performed as a public of-

4. Income from the retail sale of news-

b. The payment was received after ter-

ficial (except as a fee basis government em-

papers and magazines if you were age 18 or

mination of your agreement to perform

ployee as explained in item 8 under Other

older and kept the profits.

services for the company.

Income and Losses Included in Net Earn-

5. Income you receive as a direct seller.

ings From Self-Employment on this page.

c. You did not perform any services for

Newspaper carriers or distributors of any

the company after termination and before

2. Fees received for services performed

age are direct sellers if certain conditions

the end of the year in which you received

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

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

the payment.

come subject to SE tax, enter “Ex-

6. Amounts received by current or for-

d. You entered into a covenant not to

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

mer self-employed insurance agents and

compete against the company for at least a

not file Schedule SE. However, if you had

salespersons that are:

other earnings of $400 or more subject to

1-year period beginning on the date of ter-

SE tax, enter “Exempt — Notary” and the

mination.

a. Paid after retirement but figured as a

amount of your net profit as a notary public

e. The amount of the payment depended

percentage of commissions received from

from Schedule C or Schedule C-EZ on the

primarily on policies sold by or credited to

the paying company before retirement,

dotted line to the left of Schedule SE, line

your account during the last year of the

b. Renewal commissions, or

3. Subtract that amount from the total of

agreement, or the extent to which those pol-

c. Deferred commissions paid after re-

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

icies remain in force for some period after

tirement for sales made before retirement.

line 3.

termination, or both.

However, certain termination payments re-

3. Income you received as a retired part-

f. The amount of the payment did not

ceived by former insurance salespersons

ner under a written partnership plan that

depend to any extent on length of service or

are not included in net earnings from

provides for lifelong periodic retirement

overall earnings from services performed

self-employment (as explained in item 10

payments if you had no other interest in the

for the company (regardless of whether eli-

under Income and Losses Not Included in

partnership and did not perform services

gibility for the payment depended on length

Net Earnings From Self-Employment on

for it during the year.

of service).

this page).

4. Income from real estate rentals if you

7. Income of certain crew members of

did not receive the income in the course of

Statutory Employee Income

fishing vessels with crews of normally

a trade or business as a real estate dealer.

fewer than 10 people. See chapter 10 of

Report this income on Schedule E, or on

If you were required to check the box on

Pub. 334 for details.

Schedule C or C-EZ if you and your spouse

Schedule C or C-EZ, line 1, because you

SE-4

2010 Instruction 1040 Schedule Se (Form 1040) Page 4

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