Page:United States Statutes at Large Volume 68A.djvu/393

 CH. 2—TAX ON SELF-EMPLOYMENT

INCOME

353

CHAPTER 2—TAX ON SELF-EMPLOYMENT INCOME Sec. 1401. Rate of tax.Sec. 1402. Definitions. Sec. 1403. Miscellaneous provisions. SEC. 1401. RATE OF TAX.

In addition to other taxes, there shall be imposed for each taxable year, on the self-employment income of every individual, a tax as follows: (1) in the case of any taxable year beginning before January 1, 1960, the tax shall be equal to 3 percent of the amount of the selfemployment income for such taxable year; (2) in the case of any taxable year beginning after December 31, 1959, and before January 1, 1965, the tax shall be equal to 3% percent of the amount of the self-employment income for such taxable year; (3) in the case of any taxable year beginning after December 31, 1964, and before January 1, 1970, the tax shall be equal to 4)^ percent of the amount of the self-employment income for such taxable year; (4) in the case of any taxable year beginning after December 31, 1969, the tax shall be equal to 4% percent of the amount of the self-employment income for such taxable year. SEC. 1402. DEFINITIONS. (a) N E T EAENINGS FROM SELF-EMPLOYMENT.—The

term "net earnings from self-employment" means the gross income derived by an individual from any trade or business carried on by such individual, less the deductions allowed by this subtitle which are attributable to such trade or business, plus his distributive share (whether or not distributed) of income or loss described in section 702(a)(9) from any trade or business carried OQ by a partnership of which he is a member; except that in computing such gross income and deductions and such distributive share of partnership ordinary income or loss— (1) there shall be excluded rentals from real estate (including personal property leased with the real estate) and deductions attributable thereto, unless such rentals are received in the course of a trade or business as a real estate dealer; (2) there shall be excluded income derived from any trade or business in which, if the trade or business were carried on exclusively by employees, the major portion of the services would constitute agricultural labor as defined in section 3121(g); and there shall be excluded all deductions attributable to such income; (3) there shall be excluded dividends on any share of stock, and interest on any bond, debenture, note, or certificate, or other evidence of indebtedness, issued with interest coupons or in registered form by any corporation (including one issued by a government or political subdivision thereof), unless such dividends and § 1402(a)(3)

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