AFBF Supports the Farm Tax Parity Act
Washington--AFBF this week said it supports H.R. 5990, the Farm Tax Parity Act, to exclude farm rental income from self-employment taxes. The bill was recently introduced by Rep. Aaron Schock (R-Ill.), along with Reps. Brett Guthrie (R-Ky.), Robert Schilling (R-Ill.) and Kevin Yoder (R-Kan.).
Farm Bureau believes rental income should not be subject to self-employment taxes because it is investment income rather than earned income. This is the case for non-farm taxpayers but not for some farm and ranch landlords. As a result of court action, the Internal Revenue Service singles out farmers and ranchers who rent land to their farm corporation as landlords liable for the SE tax on cash rental income in some parts of the country.