Farm Bureau Endorses Farm Tax Parity Act
Washington--A new bill in Congress to exclude farm rental income from self-employment taxes got the endorsement of the American Farm Bureau Federation today.
Farm rental income should not be subject to the tax because it’s an investment, not earned income, AFBF President Bob Stallman wrote to the bill’s sponsor, Rep. Aaron Schock (R-Ill.).
Currently, farmers who rent land out to their own farming corporation have to pay employment taxes on the rent they receive. This is different from any other industry in which rental income is treated as investment income and is not subject to self-employment taxes.
“Farm Bureau believes it is unfair to treat active farmers and ranchers differently from non-farm landlords…for what is exactly the same activity,” Stallman wrote.
Schock introduced the Farm Tax Parity Act (H.R. 5990) last week.
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