mhlester
Level 3

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.Screenshot 2023-10-04 101555.jpg