1243. Summary Table for Optional Methods of Computing Non-Farm Self-Employment Income

The following table summarizes the effect of the optional method of computing the amount of self-employment income from a non-farm business to be reported for taxable years beginning after 1972:

Optional Method: Non-Farm Self-Employment Income
If the gross farm income is...	And the net farm profit is...	Then the self-employment income to be reported is:
If the gross farm income is...	And the net farm profit is...	Regular method	Optional method
Under $600	Under $400	None	None
Under $600	$400 to $500	Actual net	Actual net*
$600 to $2,400	Under $400	None	Two-thirds of gross
$600 to $2,400	$400 to $1,599	Actual net	Two-thirds of gross
$600 to $2,400	$1,600 to $2,400	Actual net	Actual net*
More than $2,400	Under $400	None	$1,600
More than $2,400	$400 to 1,599	Actual net	$1,600
More than $2,400	$1,600 and over	Actual net	Actual net*

* Option cannot be used because an individual using the non-farm option may not declare less than actual net earnings from self-employment.

Last Revised: March, 2001

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