Develop to determine whether there is material participation when:

• •

  an individual receives income from what is clearly a farm rental arrangement and alleges, or it is apparent, that he or she takes some part in the farming operation; or

• •

  an individual receives income from a farming arrangement and it is not clear if he or she is the sole operator, a partner, or if he or she operates the farm under a rental arrangement.

If the individual regularly reports the farm income as self-employment income and he or she lives on the farm during the time under consideration, do not develop for material participation.

When developing for material participation, request the landlord to complete an SSA-7157-U4, Farm Arrangement Questionnaire. If corroboration is necessary, request the tenant to complete the SSA-7157-U4.

RS 01803.700 Material Participation