TN 9 (05-90)
RS 02505.070 Determining if Services Are Substantial
The amount of time devoted to the trade or business. See RS 02505.075.
The nature of the services rendered.
Comparison of services before and after retirement.
The setting in which the services were performed.
B. KINDS OF FACTORS TO CONSIDER
Periods of Vacation, Sickness or Other Illness
Distinguish Ownership from SS
Ownership of an operating business is not controlling in establishing retirement.
Retirement does not require divestment of ownership.
Beneficiary may arrange affairs so as not to require SS in one or more months.
Distinguish Between Earnings and SS
There is not necessarily a connection between earnings from SE and SS.
Earnings from SE may come after the month services were rendered.
Earnings may represent profits based solely on investments or past services.
Services may be substantial in a month in which no income is realized.
Services may not be substantial in a month of substantial earnings.
Consider earnings to the extent that earnings from SE truly reflect the kind and amount of services rendered in a month.