The same rules apply. A significant 1998 Tax Court decision held that CRP rents received by an active farmer are not subject to self-employment tax. This conflicts with the IRS's longstanding position on the issue. Federal gas tax credit. The amount of the federal gas tax credit is includible in gross income for the taxable year in which a timely return is filed on which the credit is taken.
Crop insurance proceeds.
Taxpayers on the cash method of accounting may elect to include crop insurance and disaster payments in income in the taxable year following the crop loss if it is the taxpayer's practice to report income from sale of the crop in the later year. Included are payments made because of damages to crops or the inability to plant crops. Deferral is available only for payments directly tied to the insured's actual loss. Weather-related sales of livestock. The livestock sold or exchanged must be replaced within two years after the year in which proceeds were received with livestock similar or related in service or use.