mhlester
Level 3
10-04-2023
12:20 PM
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Hi, Karl,
Thank you for your reply.
The farm (actually, a ranch being populated with various livestock) is not yet generating revenue so there is no profit. I believe the activity is subject to self-employment tax, but the taxpayer has no net self-employment income. The client is in Texas, which is a community property state.
Assigning it to one or the other of the spouses removes the diagnostic.