Instructions For Schedule Se (Form 1040) - 2017 (Page 5 of 6) in pdf

c. Deferred commissions paid after

ployee as explained in item 8 under

Oth-

b. The sale, exchange, involuntary

retirement for sales made before retire-

er Income and Losses Included in Net

conversion, or other disposition of prop-

ment.

Earnings From

Self-Employment, earli-

erty unless the property is stock in trade

er).

or other property that would be includi-

However, certain termination pay-

ble in inventory, or held primarily for

ments received by former insurance

2. Fees received for services per-

sale to customers in the ordinary course

salespersons aren’t included in net earn-

formed as a notary public. If you had no

of the business; or

ings from self-employment (as ex-

other income subject to SE tax, enter

plained in item 10 under

Income and

“Exempt—Notary”

Form

1040,

c. Certain transactions in timber,

Losses Not Included in Net Earnings

line 57. Don’t file Schedule SE. Howev-

coal, or domestic iron ore.

From

Self-Employment).

er, if you had other earnings of $400 or

9. Net operating losses from other

more subject to SE tax, enter “Ex-

7. Income of certain crew members

years.

empt—Notary” and the amount of your

of fishing vessels with crews of normal-

10. Termination payments you re-

net profit as a notary public from Sched-

ly fewer than 10 people. See Pub. 334

ceived as a former insurance salesperson

ule C or Schedule C-EZ on the dotted

for details.

if all of the following conditions are

line to the left of Schedule SE, line 3.

8. Fees as a state or local govern-

met.

Subtract that amount from the total of

ment employee if you were paid only on

a. The payment was received from

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

a fee basis and the job wasn’t covered

an insurance company because of serv-

on line 3.

under a federal-state social security cov-

ices you performed as an insurance

3. Income you received as a retired

erage agreement.

salesperson for the company.

partner under a written partnership plan

9. Interest received in the course of

b. The payment was received after

that provides for lifelong periodic retire-

any trade or business, such as interest on

termination of your agreement to per-

ment payments if you had no other inter-

notes or accounts receivable.

form services for the company.

est in the partnership and didn’t perform

10. Fees and other payments received

services for it during the year.

c. You didn’t perform any services

by you for services as a director of a

for the company after termination and

4. Income from real estate rentals if

corporation.

before the end of the year in which you

you didn’t receive the income in the

11. Recapture amounts under sections

received the payment.

course of a trade or business as a real es-

179 and 280F that you included in gross

tate dealer. Report this income on

d. You entered into a covenant not

income because the business use of the

Schedule E.

to compete against the company for at

property dropped to 50% or less. Don’t

least a 1-year period beginning on the

5. Income from farm rentals (includ-

include amounts you recaptured on the

date of termination.

ing rentals paid in crop shares) if, as

disposition of property. See Form 4797.

landlord, you didn’t materially partici-

e. The amount of the payment de-

12. Generally, fees you received as a

pate in the production or management of

pended primarily on policies sold by or

professional fiduciary. This also may ap-

the production of farm products on the

credited to your account during the last

ply to fees paid to you as a nonprofes-

land. See Pub. 225 for details. Report

year of the agreement, or the extent to

sional fiduciary if the fees relate to ac-

this income on Form 4835. Use two

which those policies remain in force for

tive participation in the operation of the

Forms 4835 if you and your spouse

some period after termination, or both.

estate's business, or the management of

made an election to be taxed as a quali-

f. The amount of the payment didn’t

an estate that required extensive man-

fied joint venture.

depend to any extent on length of serv-

agement activities over a long period of

6. Payments you receive from the

ice or overall earnings from services

time.

Conservation Reserve Program if you

performed for the company (regardless

13. Gain or loss from section 1256

are receiving social security benefits for

of whether eligibility for the payment

contracts or related property by an op-

retirement or disability. Deduct these

depended on length of service).

tions or commodities dealer in the nor-

payments on line 1b of Schedule SE.

Statutory Employee Income

mal course of dealing in or trading sec-

7. Dividends on shares of stock and

tion 1256 contracts.

If you were a statutory employee, don’t

interest on bonds, notes, or other evi-

Income and Losses Not

include the net profit or (loss) from

dence of indebtedness issued with inter-

Schedule C, line 31 (or the net profit

est coupons or in registered form by any

Included in Net Earnings

from Schedule C-EZ, line 3), on Short

corporation (including those issued by a

From Self-Employment

or Long Schedule SE, line 2. But if you

government or its political subdivision),

file Long Schedule SE, be sure to in-

if you didn’t receive the income in the

1. Salaries, fees, and other income

clude statutory employee social security

course of your trade or business as a

subject to social security or Medicare

wages and tips from Form W-2 on

dealer in stocks or securities.

tax that you received for performing

line 8a.

services as an employee, including serv-

8. Gain or loss from:

ices performed as an employee under the

a. The sale or exchange of a capital

railroad retirement system. This includes

asset;

services performed as a public official

(except as a fee basis government em-

SE-5

Instructions For Schedule Se (Form 1040) - 2017 Page 5

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