The only time self employment taxes kick in on the landlord when the landlord rents real estate-------------is in the case when the landlord ALSO "materially participates" in the production activities on the land that is being rented...........ie if he is materially involved in the production process, ie the farming operation.  He is then deemed to be part of the production process, so he is earning from those production activities, and the earnings are based on the result of those activities.

Section 1402 describes this..........do a google, and you can get it.........and it reads easily, ie don't have to be a technician to understand it.

So..........if a farmer puts his operations into a corporation/partnership/LLC of any kind.......and that corporation/entity pays rent to the farmer----------AND that farmer is also an employee or partner in that farming entity, the farmer will be deemed to be a "material participant" in the production process---------and the rents will be subject to SE tax.

The rents can be cash rents........ie amount per acre.........share crops........makes no difference..........subject to SE tax.

If the landlord does not "materially participate"-----------then the farm land rent is NOT subject to SE tax.

Summary---------the usual time this gets sticky is when an owner/operator pays rent to himself from his owned entity.  If the land is rented from a retired person, even if that retired person shows up everyday and talks alot, probably not going to be a true "material participant", wherein the operation depends on what that person says or does.

Rent received from renting a, say, parking lot-------not subject to SE tax since it is not ag land involved in production.

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If the person rents BUILDINGS to anyone/anything----------rents are not subject to SE tax, since 1402 refers only to "land".

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If a person rents equipment to anyone/anything..........that is personal property, and those rents are subject to SE tax--------different section of the law, and I cannot quote the section from memory.

The one exception to the se tax and equipment--------------is if the equipment is rented along with the ag land, ie rented as a package deal.  Then, the real estate aspect controls, and the rent is NOT subject to SE taxes, UNLESS the landlord is a material participant in the production process with respect to raising commodities on that land.

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The important elements in Section 1402 amount to one or two sentences.........again, easy read.  Memory says it is 1402(a) or (b)........but cannot remember for sure.

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This material participant stuff is why crp money is subject to SE tax..........govt took the position that the contract requires taking care of the ground, so even though the contract refers to "rents"............person is "materially participating"--------so SE tax.

(seems to me just a way to get taxes..........)