(B) A transportation system or a part thereof shall be considered to have been acquired by a State or political subdivision from private ownership if prior to the acquisition service performed by employees in connection with the operation of the system or part thereof acquired constituted employment under this subchapter, and some of such employees became employees of the State or political subdivision in connection with and at the time of such acquisition.

(C) The term "political subdivision" includes an instrumentality of (i) a State, (ii) one or more political subdivisions of a State, or (iii) a State and one or more of its political subdivisions. (1) Service in the uniformed services.

(1) Except as provided in paragraph (4) of this subsection, the term "employment" shall, notwithstanding the provisions of subsection (a) of this section, include service performed after December 1956 by an individual as a member of a uniformed service on active duty; but such term shall not include any such service which is performed while on leave without pay.

(2) The term "active duty" means "active duty" as described in section 1101 of Title 38, except that it shall also include "active duty for training" as described in such section.

(3) The term "inactive duty training" means "inactive duty training" as described in such section 1101 of Title 38.

(4) (A) Paragraph (1) of this subsection shall not apply in the case of any service, performed by an individual as a member of a uniformed service, which is creditable under section 228c-1 of Title 45. The Railroad Retirement Board shall notify the Secretary of Health, Education, and Welfare, as provided in section 228c-1 (p) (2) of Title 45, with respect to all such service which is so creditable.

(B) In any case where benefits under this subchapter are already payable on the basis of such individual's wages and self-employment income at the time such notification (with respect to such individual) is received by the Secretary, the Secretary shall certify no further benefits for payment under this subchapter on the basis of such individual's wages and self-employment income, or shall recompute the amount of any further benefits payable on the basis of such wages and self-employment income, as may be required as a consequence of subparagraph (A) of this paragraph. No payment of a benefit to any person on the basis of such individual's wages and self-employment income, certified by the Secretary prior to the end of the month in which he receives such notification from the Railroad Retirement Board, shall be deemed by reason of this subparagraph to have been an erroneous payment or a payment to which such person was not entitled. The Secretary shall, as soon as possible after the receipt of such notification from the Railroad Retirement Board, advise such Board whether or not any such benefit will be reduced or terminated by reason of subparagraph (A) of this paragraph, and if any such benefit will be so reduced or terminated, specify the first month with respect to which such reduction or termination will be effective.

(m) Member of a uniformed service.

The term "member of a uniformed service" means any person appointed, enlisted, or inducted in a component of the Army, Navy, Air Force, Marine Corps, or Coast Guard (including a reserve component of a uniformed service as defined in section 1101 (3) of Title 38), or in one of those services without specification of component, or as a commissioned officer of the Coast and Geodetic Survey or the Regular or Reserve Corps of the Public Health Service, and any person serving in the Army or Air Force under call or conscription. The term includes

(1) a retired member of any of those services; (2) a member of the Fleet Reserve or Fleet Marine Corps Reserve;

(3) a cadet at the United States Military Academy, a midshipman at the United States Naval Academy, and a cadet at the United States Coast Guard Academy or United States Air Force Academy;

(4) a member of the Reserve Officers' Training Corps, the Naval Reserve Officers' Training Corps, or the Air Force Reserve Officers' Training Corps, when ordered to annual training duty for fourteen days or more, and while performing authorized travel to and from that duty; and

(5) any person while enroute to or from, or at, a place for final acceptance or for entry upon active duty in the military or naval service

(A) who has been provisionally accepted for such duty; or

(B) who, under the Universal Military Training and Service Act, has been selected for active military or naval service;

and has been ordered or directed to proceed to such place.

The term does not include a temporary member of the Coast Guard Reserve.

(n) Crew leader.

The term "crew leader" means an individual who furnishes individuals to perform agricultural labor for another person, if such individual pays (either on his own behalf or on behalf of such person) the individuals so furnished by him for the agricultural labor performed by them and if such individual has not entered into a written agreement with such person whereby such individual has been designated as an employee of such person; and such individuals furnished by the crew leader to perform agricultural labor for another person shall be deemed to be the employees of such crew leader. A crew leader shall, with respect to services performed in furnishing individuals to perform agricultural labor for another person and service performed as a member of the crew, be deemed not to be an employee of such other person.

(0) Peace Corps volunteer service.

The term "employment" shall, notwithstanding the provisions of subsection (a) of this section, include service performed by an individual as a volunteer or volunteer leader within the meaning of the Peace Corps Act. (Aug. 14, 1935, ch. 531, title II, § 210, as added Aug. 10, 1946, ch. 951, title II, § 201, 60 Stat. 979, and amended, Aug. 28, 1950, ch. 809, title I, § 104 (a), 64 Stat. 492; Oct. 31, 1949, ch. 792, title V, § 506(a), formerly § 505(a), as added

July 12, 1951, ch. 223, 65 Stat. 120, and renumbered Oct. 3, 1961, Pub. L. 87-345, § 3, 75 Stat. 761; Sept. 1, 1954, ch. 1206, title I, § 101(a) (4), (5), (b), (c) (1), (2), (e), (f), (m), 68 Stat. 1052, 1061; Aug. 1, 1956, ch. 836, title I, §§ 104(a), (b), (c) (1), 105 (b), 121 (c), 70 Stat. 824, 828, 839; Aug. 1, 1956, ch. 837, title IV, § 402 (a), 70 Stat. 870; Aug. 28, 1958, Pub. L. 85-840, title III, § 311(a), 312(a), 72 Stat. 1035; June 25, 1959, Pub. L. 86-70, § 32(c) (2), 73 Stat. 149; Aug. 18, 1959, Pub. L. 86-168, title I, § 104 (h), title II, § 202 (a), 73 Stat. 387, 389; July 12, 1960, Pub. L. 86–624, § 30 (c) (2), 74 Stat. 420; Sept. 13, 1960, Pub. L. 86778, title I, §§ 103 (c)—(f) (j) (2) (A), (B), 104(a), 74 Stat. 936, 937, 942; Sept. 21, 1961, Pub. L. 87-256, § 110(e) (2), 75 Stat. 537; Sept. 22, 1961, Pub. L. 87-293, title II, § 202(b) (1), 75 Stat. 626.)

REFERENCES IN TEXT

Section 1410 of Title 26, referred to in subsecs. (a) (5) and (a) (6) (B), which is a reference to section 1410 of the Internal Revenue Code, 1939, was repealed by section 7851 of Title 26, I.R.C. 1954, and is now covered by section 3111 of said Title 26. For provision deeming a reference in other laws to a provision of I.R.C. 1939, also as a reference to corresponding provision of I.R.C. 1954, see section 7852 (b) of said Title 26.

The Civil Service Retirement Act, referred to in subsec. (a) (6) (C) (vi), is classified to chapter 30 of Title 5, Executive Departments and Government Officers and Employees.

Section 1532 of Title 26, referred to in subsec. (a) (9), which is a reference to section 1532 of the Internal Revenue Code, 1939, was repealed by section 7851 of Title 26, I.R.C. 1954, and is now covered by sections 3231 and 7701(a)(1)—(9) of said Title 26.

Section 101 of Title 26, referred to in subsec. (a) (10) (A), which is a reference to section 101 of the Internal Revenue Code, 1939, was repealed by section 7851 of Title 26, I.R.C. 1954, and is now covered by sections 501, 502, 521 and 522 of said Title 26.

For provision deeming a reference in other laws to a provision of I.R.C. 1939, also as a reference to corresponding provision of I.R.C. 1954, see section 7852(b) of said Title 26.

The International Organizations Immunities Act, referred to in subsection (a)(15), is classified to sections 288-2881 of Title 22, Foreign Relations and Intercourse.

The Internal Security Act of 1950, as amended, referred to in subsec. (a) (17), is classified to chapter 23 of Title 50, War and National Defense.

Section 1101 of Title 38, referred to in subsecs. (1) (2) and (1) (3), was repealed in the general revision of Title 38 by Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1106, and is now covered by sections 101, 106 (b), (c), 401, 402, 403, 404 and 421 of Title 38, Veterans' Benefits.

Section 1101 (3) of Title 38, referred to in subsec. (m), was repealed in the general revision of Title 38 by Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1106, and is now covered by section 101(27) of Title 38, Veterans' Benefits.

The Universal Military Training and Service Act, referred to in subsec. (m) (5) (B), is classified to sections 451, 453, 454, 455, 456 and 458-471 of Appendix to Title 50, War and National Defense.

The Peace Corps Act, referred to in subsec. (o), is classified to chapter 34 of Title 22, Foreign Relations and Intercourse.

AMENDMENTS

1961-Subsec. (a) (19). Pub. L. 87-256 added subsec. (a) (19).

Subsec. (0). Pub. L. 87-293 added subsec. (o). 1960-Subsec. (a) (3). Pub. L. 86-778, § 104(a), designated existing provisions as cl. (A) and eliminated therein provisions which related to service performed by an individual in the employ of his son or daughter, and added cl. (B).

Subsec. (a) (7). Pub. L. 86-778, § 103 (c), excluded service in the employ of the Government of Guam or the Government of American Samoa or any political subdivision thereof, or of any instrumentality of any one or more

of the foregoing which is wholly owned thereby, performed by an officer or employee thereof.

Subsec. (a) (18). Pub. L. 86-778, § 103(d), added subsec. (a) (18).

Subsec. (h). Pub. L. 86–778, § 103(e), included Guam and American Samoa.

Pub. L. 86-624 substituted "includes the District of Columbia and" for "includes Hawaii, the District of Columbia, and".

Subsec. (1). Pub. L. 86-778, § 103 (f), included Guam and American Samoa.

Pub. L. 86-624 eliminated "Hawaii," preceding "the District of Columbia."

Subsec. (j). Pub. L. 86-778, § 103 (j) (2) (A), (B), redesignated former subsec. (k) as (j) and repealed former subsec. (j) which related to citizens of Puerto Rico. Subsecs. (k)-(n). Pub. L. 86-778, § 103(j) (2) (B), redesignated former subsecs. (1)—(o) as (k)—(n).

1959 Subsec. (a) (6) (B) (ii). Pub. L. 86-168 substituted "Federal land bank association" for "national farm loan association", and included service in the employ of Federal land banks, Federal intermediate credit banks and banks for cooperatives.

Subsec. (h). Pub. L. 86-70 eliminated "Alaska," preceding "Hawaii."

Subsec. (1). Pub. L. 86-70 eliminated "Alaska," preceding "Hawaii."

1958 Subsec. (a)(1). Pub. L. 85-840, § 311(a), eliminated provisions which excluded from coverage service performed in connection with the production or harvesting of any commodity defined as an agricultural commodity in section 1141] (g) of Title 12.

Subsec. (a) (8) (B). Pub. L. 85-840, § 312 (a), substituted references to the Internal Revenue Code of 1954 for references to the Internal Revenue Code of 1939, and inserted provisions making subparagraph inapplicable to service performed during the period for which a certificate is in effect if such service is performed by an employee who, after the calendar quarter in which the certificate was filed with respect to a group described in section 3121 (k) (1) (E) of Title 26, became a member of such group, and making subparagraph applicable with respect to service performed by an employee as a member of a group described in section 3121(k) (1) (E) of Title 26 with respect to which no certificate is in effect.

1956 Subsec. (a) (1) (B). Act Aug. 1, 1956, ch. 836, § 104(a), excluded from coverage service performed by foreign agricultural worekrs lawfully admitted on a temporary basis from any foreign country or possession thereof.

Subsec. (a) (6) (B) (ii). Act Aug. 1, 1956, ch. 836, § 104 (b) (1), included service performed in the employ of a Federal Home Loan Bank.

Subsec. (a) (6) (C) (vi). Act Aug. 1, 1956, ch. 836, § 104 (b)(2), substituted "Civil Service Retirement Act" for "Civil Service Retirement Act of 1930", and inserted "(other than the retirement system of the Tennessee Valley Authority)" following "retirement system".

Subsecs. (a) (16), (17). Act Aug. 1, 1956, ch. 836, §§ 104 (c) (1), 121(c), added subsecs. (a) (16), (17). Subsecs. (m), (n). Act Aug. 1, 1956, ch, 837, added subsecs. (m) and (n).

Subsec. (o). Act Aug. 1, 1956, ch. 836, § 105 (b), added subsec. (o).

1954 Subsec. (a) (B). Act Sept. 1, 1954, § 101(m), included within the definition of "employment" service performed outside the United States by citizens of the United States as employees for foreign subsidiaries of domestic corporations under certain conditions.

Subsec. (a) (1). Act Sept. 1, 1954, § 101 (a) (4), removed the specific exception from employment of services performed in connection with the ginning of cotton, and added an exception for services performed by West Indian agricultural workers lawfully admitted to the United States on a temporary basis.

Subsec. (a) (3). Act Sept. 1, 1954, § 101 (a) (5), redesignated former par. (4) as (3), and deleted former par. (3). Subsec. (a) (4). Act Sept. 1, 1954, § 101(b), redesignated former par. (5) as (4), and made the exclusion with respect to services on non-American vessels or aircraft applicable only if the individual is not a United States citizen or the employer is not an American employer. Former par. (4) redesignated (3).

Subsec. (a) (5). Act Sept. 1, 1954, § 101(a) (5), redesignated former par. (6) as (5). Former par. (5) redesignated (4).

Subsec. (a) (6) (B). Act Sept. 1, 1954, § 101(a) (5), redesignated former par. (7) as (6). Act Sept. 1, 1954, § 101 (c) (1) (A), inserted "by an individual" after "Service performed" and "and if such service is covered by a retirement system established by such instrumentality;" after "December 31, 1950."

Subsec. (a) (6) (B) (v). Act Sept. 1, 1954, § 101 (a) (5), redesignated former par. (7) as (6). Act Sept. 1, 1954, § 101 (C) (1) (B), added cl. (v). Subsec. (a) (6) (C). Act Sept. 1, 1954, § 101(a) (5), redesignated former par. (7) as (6). Act Sept. 1, 1954, § 101 (C) (2), deleted the exception from coverage for services in the following categories; temporary employees in the Post Office Department field service; temporary censustaking employees of the Bureau of the Census; Federal employees paid on a contract or fee basis; Federal employees receiving compensation of $12 a year or less; certain consular agents; individuals employed under Federal unemployment relief programs; and members of State, county, or community committees under the Production and Marketing Administration and similar bodies, unless such bodies are composed exclusively of full-time Federal employee and limited the exclusion of inmates or patients of United States institutions to inmates of penal institutions.

Subsec. (a) (7)—(13). Act Sept. 1, 1954, § 101(a)(5), redesignated former pars. (8)-(14) as (7)-(13), respectively.

Subsec. (a) (15). Act Sept. 1, 1954, § 101(e), redesignated former par. (17) as (15), and deleted former par. (15).

Subsec. (k) (3) (C). Act Sept. 1, 1954, § 101(f), eliminated the requirement that the services of homeworkers be subject to State licensing laws in order to constitute covered employment.

1951-Subsec. (a)(1). Act Oct. 31, 1949, § 505(a), as added by act July 12, 1951, added subparagraph "(C)". 1950-Act Aug. 28, 1950, substituted a new section 410 for former section 410.

Subsec. (a) (14). Act Sept. 1, 1954, § 101 (e), resignated former par. (16) as (14). Former par. (14) redesignated (13).

EFFECTIVE DATE OF 1961 AMENDMENTS Amendment of this section by Pub. L. 87-293 applicable with respect to service performed after Sept. 22, 1961, but in the case of persons serving under the Peace Corps agency established by executive order applicable with respect to service performed on or after the effective date of enrollment, see section 202 (c) of Pub. L. 87-293, set out as a note under section 3121 of Title 26, Internal Revenue Code.

Amendment of section by Pub. L. 87-256 applicable with respect to service performed after Dec. 31, 1961, see section 110 (h) (3) of Pub. L. 87-256, set out as a note under section 3121 of Title 26, Internal Revenue Code.

EFFECTIVE DATE OF 1960 AMENDMENTS

Section 104 (c) of Pub. L. 86-778 provided that: "The amendments made by subsections (a) and (b) [to subsec. (a) (3) of this section and section 3121(b) (3) of Title 26] shall apply only with respect to services performed after 1960."

Amendment of subsec. (a) (7) of this section by Pub. L. 86-778 applicable only with respect to (1) service in the employ of the Government of Guam or any political subdivision thereof, or any instrumentality of any one or more of the foregoing wholly owned thereby, which is performed after 1960 and after the calendar quarter in which the Secretary of the Treasury receives a certification by the Governor of Guam that legislation has been enacted by the Government of Guam expressing its desire to have the insurance system established by Title II of the Social Security Act, this subchapter, extended to the officers and employees of such Government and such political subdivisions and instrumentalities, and (2) service in the employ of the Government of American Samoa or any political subdivision thereof or any instrumentality of any one or more of the foregoing wholly owned thereby, which is performed after 1960 and after the calendar

quarter in which the Secretary of the Treasury receives a certification by the Governor of American Samoa that the Government of American Samoa desires to have the insurance system established by this subchapter extended to the officers and employees of such Government and such political subdivisions and instrumentalities, see section 103 (v) (1), (2) of Pub. L. 86-778, set out as a note under section 402 of this title.

Subsec. (a) (18) of this section applicable only with respect to service performed after 1960, see section 103 (v) (1) of Pub. L. 86-778, set out as a note under section 402 of this title.

Amendment of subsecs. (h) and (1) of this section by Pub. L. 86-778 applicable only with respect to service performed after 1960, except that insofar as the carrying on of a trade or business (other than performance of service as an employee) is concerned, the amendment shall be applicable only in the case of taxable years beginning after 1960, see section 103 (v) (1), (3) of Pub. L. 86-778, set out as a note under section 402 of this title.

Amendment of subsecs. (h) and (1) of this section by Pub L. 86-624 effective on Aug. 21, 1959, see section 47(f) of Pub. L. 86-624, set out as a note under section 645 of Title 20, Education.

Repeal of former subsec. (1) of this section and redesignation of subsecs. (k)—(o) of this section as subsecs. (1)-(n) by Pub. L. 86-778 effective on Sept. 13, 1960, see section 103 (v) (1), (3) of Pub. L. 86-778, set out as a note under section 402 of this title.

EFFECTIVE DATE OF 1959 AMENDMENTS Amendment of section by Pub. L. 86-168 effective Jan. 1, 1960, see section 203 (c) of Pub. L. 86-168, set out as a note under section 6401 of Title 12, Banks and Banking.

Amendment of section by Pub. L. 86-70 effective on Jan. 3, 1959, see section 47(d) of Pub. L. 86-70, set out as a note under section 151 of Title 20, Education.

EFFECTIVE DATE OF 1958 AMENDMENT

Section 311 (b) of Pub. L. 85-840 provided that: "The amendment made by subsection (a) [to subsec (a) (1) of this section] shall apply with respect to service performed after 1958."

Section 312 (b) of Pub. L. 85-840 provided that: "The amendment made by subsection (a) [to subsec. (a) (8) (B) of this section] shall apply with respect to certificates filed under section 3121 (k) (1) of the Internal Revenue Code of 1954 [section 3121 (k) (1) of Title 26] after the date of enactment of this Act [August 28, 1958]."

EFFECTIVE DATE OF 1956 AMENDMENTS

Section 104 (1) of act Aug. 1, 1956, ch. 836, provided that:

"(1) The amendment made by subsection (a) [to subsec. (a) (1) (B) of this section] shall apply with respect to service performed after 1956. The amendments made by paragraph (1) of subsection (c) [to subsec. (a) (16) of this section] shall apply with respect to service performed after 1954. The amendment made by paragraph (2) of subsection (c) [to section 411 (a) (1) of this title] shall apply with respect to taxable years ending after 1955. The amendment made by paragraph (3) of subsection (c) [to section 411 (c) (2) of this title] shall apply with respect to taxable years ending after 1954. The amendment made by subsection (d) [to section 411 (c) (5) of this title shall apply with respect to taxable years ending after 1955. The amendment made by subsection (h) [to section 411 (a) (7) (B) of this title] shall apply with respect to the same taxable years with respect to which the amendment made by section 201 (g) of this Act [to section 1402 (a) (8) (B) of Internal Revenue Code of 1954] applies.

"(2) (A) Except as provided in subparagraphs (B) and (C), the amendments made by subsection (b) [to subsecs. (a) (B) (ii) and (a) (6) (C) (vi) of this section] shall apply only with respect to service performed after June 30, 1957, and only if—

"(1) in the case of the amendment made by paragraph (1) of such subsection [to subsec. (a) (6) (B) (11) of this section], the conditions prescribed in subparagraph (B) are met; and

"(11) in the case of the amendment made by paragraph (2) of such subsection [to subsec. (a) (6) (C) (vi) of this section], the conditions prescribed in subparagraph (C) are met.

"(B) The amendment made by paragraph (1) of subsection (b) [to subsec. (a) (6) (B) (11) of this section] shall be effective only if

"(1) the Federal Home Loan Bank Board submits to the Secretary of Health, Education, and Welfare, and the Secretary approves, before July 1, 1957, a plan, with respect to employees of Federal Home Loan Banks, for the coordination, on an equitable basis, of the benefits provided by the retirement system applicable to such employees with the benefits provided by title II of the Social Security Act [this subchapter]; and

"(11) such plan specifies, as the effective date of the plan, July 1, 1957, or the first day of a prior calendar quarter beginning not earlier than January 1, 1956.

If the plan specifies as the effective date of the plan a day before July 1, 1957, the amendment made by paragraph (1) of subsection (b) [to subsec. (a) (6) (B) (11) of this section] shall apply with respect to service performed on or after such effective date; except that, if such effective date is prior to the day on which the Secretary approves the plan, such amendment shall not apply with respect to service performed, prior to the day on which the Secretary approves the plan, by an individual who is not an employee of a Federal Home Loan Bank on such day.

"(C) The amendment made by paragraph (2) of subsection (b) [to subsec. (a) (6) (C) (vi) of this section] shall be effective only if

"(1) the Board of Directors of the Tennessee Valley Authority submits to the Secretary of Health, Education, and Welfare, and the Secretary approves, before July 1, 1957, a plan, with respect to employees of the Tennessee Valley Authority, for the coordination, on an equitable basis, of the benefits provided by the retirement system applicable to such employees with the benefits provided by title II of the Social Security Act [this subchapter]; and

"(11) such plan specifies, as the effective date of the plan, July 1, 1957, or the first day of a prior calendar quarter beginning not earlier than January 1, 1956.

If the plan specifies as the effective date of the plan a day before July 1, 1957, the amendment made by paragraph (2) of subsection (b) [to subsec. (a) (6) (C) (vi) of this section] shall apply with respect to service performed on or after such effective date; except that, if such effective date is prior to the day on which the Secretary approves the plan, such amendment shall not apply with respect to service performed, prior to the day on which the Secretary approves the plan, by an individual who is not an employee of the Tennessee Valley Authority on such day.

"(D) The Secretary of Health, Education, and Welfare shall, on or before July 31, 1957, submit a report to the Congress setting forth the details of any plan approved by him under subparagraph (B) or (C)."

Subsecs. (m) and (n) effective Jan. 1, 1957.

Subsec. (0) of this section, added by section 105 (b) of act Aug. 1, 1956, ch. 836, as applicable with respect to service performed after 1956, see section 105 (d) of such act Aug. 1, 1956, set out as a note under section 409 of this title.

EFFECTIVE DATE OF 1954 AMENDMENT Section 101 (n) of act Sept. 1, 1954, provided in part that the amendments to subsec. (a) by section 101 (a) (4), (5), of act Sept. 1, 1954 shall be applicable only with respect to services (whether performed after 1954 or prior to 1955) for which the remuneration is paid after 1954.

Section 101 (n) of act Sept. 1, 1954, provided in part that the amendments to subsecs. (a) (4), (6) (B) and (C), (14) and (15), and (k) (3) (C) made by section 101 (b), (c) (1) and (2), (e) and (f) of act Sept. 1, 1954 shall be applicable only with respect to services performed after 1954.

EFFECTIVE DATE OF 1950 AMENDMENT

Section as added by section 104 (a) to be effective Jan. 1, 1951, see note set out under section 409 of this title.

Former section 410 was stricken out effective Sept. 1, 1950, by section 105 of act Aug. 28, 1950.

COVERED EMPLOYMENT NOT COUNTED UNDER OTHER FEDERAL RETIREMENT SYSTEMS

Section 115 of act Sept. 1, 1954, provided that: "Notwithstanding any other provision of law, in determining eligibility for or the amount of any benefit (other than a benefit under title II of the Social Security Act [this subchapter] or under the Railroad Retirement Act of 1937, as amended [section 228a et seq. of Title 45]) under any retirement system established by the United States or any instrumentality thereof, there shall not be taken into account any service which, by reason of the amendments to section 210 (a) of the Social Security Act [subsec. (a) of this section] made by section 101 (c) of this Act, constitutes employment as defined in such section 210 (a)." TERMINATION OF WAR AND EMERGENCIES

Joint Res. July 25, 1947, ch. 327, § 3. 61 Stat. 451, provided that in the interpretation of this section, the date July 25, 1947, shall be deemed to be the date of termination of any state of war theretofore declared by Congress and of the national emergencies proclaimed by the President on September 8, 1939, and May 27, 1941.

§ 410a. Limitation on definition of employment.

CODIFICATION

Section, act Aug. 29, 1935. ch. 812, § 17, as amended June 24, 1937, ch. 382. part I, § 1, 50 Stat. 317, part of Railroad Retirement Act, limited term "employment" as defined in former section 410, which section 410 was omitted by amendment of title II by act Aug. 10, 1939, ch. 666, title II, § 201, 53 Stat. 1362. See note under section 228q of Title 45, Railroads.

§ 411. Definitions relating to self-employment. For the purposes of this subchapter

(a) Net earnings from self-employment.

The term "net earnings from self-employment" means the gross income, as computed under chapter 1 of Title 26, derived by an individual from any trade or business carried on by such individual, less the deductions allowed under such chapter which are attributable to such trade or business, plus his distributive share (whether or not distributed) of the ordinary net income or loss, as computed under section 183 of Title 26, from any trade or business carried on 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 net income or loss

(1) There shall be excluded rentals from real estate and from personal property leased with the real estate (including such rentals paid in crop shares), together with the deductions attributable thereto, unless such rentals are received in the course of a trade or business as a real estate dealer; except that the preceding provisions of this paragraph shall not apply to any income derived by the owner or tenant of land if (A) such income is derived under an arrangement, between the owner or tenant and another individual, which provides that such other individual shall produce agricultural or horticultural commodities (including livestock, bees, poultry, and furbearing animals and wildlife) on such land, and that there shall be material participation by the owner or tenant in the production or the management of the production of such agricultural or horticultural commodities, and (B) there is material participation by the owner or tenant

with respect to any such agricultural or horticultural commodity;

(2) 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 interest (other than interest described in section 25 (a) of Title 26) are received in the course of a trade or business as a dealer in stocks or securities;

(3) There shall be excluded any gain or loss (A) which is considered under chapter 1 of Title 26 as gain or loss from the sale or exchange of a capital asset, (B) from the cutting of timber, or the disposal of timber, coal, or iron ore, if section 631 of Title 26 applies to such gain or loss, or (C) from the sale, exchange, involuntary conversion, or other disposition of property if such property is neither (i) stock in trade or other property of a kind which would properly be includible in inventory if on hand at the close of the taxable year, nor (ii) property held primarily for sale to customers in the ordinary course of the trade or business;

(4) The deduction for net operating losses provided in section 23 (s) of Title 26 shall not be allowed;

(5) (A) If any of the income derived from a trade or business (other than a trade or business carried on by a partnership) is community income under community property laws applicable to such income, all of the gross income and deductions attributable to such trade or business shall be treated as the gross income and deductions of the husband unless the wife exercises substantially all of the management and control of such trade or business, in which case all of such gross income and deductions shall be treated as the gross income and deductions of the wife;

(B) If any portion of a partner's distributive share of the ordinary net income or loss from a trade or business carried on by a partnership is community income or loss under the community property laws applicable to such share, all of such distributive share shall be included in computing the net earnings from self-employment of such partner, and no part of such share shall be taken into account in computing the net earnings from self-employment of the spouse of such partner;

(6) A resident of the Commonwealth of Puerto Rico shall compute his net earnings from selfemployment in the same manner as a citizen of the United States but without regard to the provisions of section 933 of Title 26;

(7) An individual who is a duly ordained, commissioned, or licensed minister of a church or a member of a religious order shall compute his net earnings from self-employment derived from the performance of service described in subsection (c) (4) of this section without regard to section 107 (relating to rental value of parsonages) and section 119 (relating to meals and lodging furnished for the convenience of the employer) of

Title 26, Internal Revenue Code of 1954 and, in addition, if he is a citizen of the United States performing such service as an employee of an American employer (as defined in section 410 (e) of this title) or as a minister in a foreign country who has a congregation which is composed predominantly of citizens of the United States, without regard to section 911 (relating to earned income from sources without the United States) and section 931 (relating to income from sources within possessions of the United States) of Title 26, Internal Revenue Code of 1954; and

(8) The term "possession of the United States" as used in sections 931 (relating to income from sources within possessions of the United States) and 932 (relating to citizens of possessions of the United States) of Title 26 shall be deemed not to include the Virgin Islands, Guam, or American Samoa.

If the taxable year of a partner is different from that of the partnership, the distributive share which he is required to include in computing his net earnings from self-employment shall be based upon the ordinary net income or loss of the partnership for any taxable year of the partnership (even though beginning prior to 1951) ending within or with his taxable year. In the case of any trade or business which is carried on by an individual or by a partnership and in which, if such trade or business were carried on exclusively by employees, the major portion of the services would constitute agricultural labor as defined in section 410 (f) of this title

(i) in the case of an individual, if the gross income derived by him from such trade or business is not more than $1,800, the net earnings from self-employment derived by him from such trade or business may, at his option, be deemed to be 66 percent of such gross income; or

(ii) in the case of an individual, if the gross income derived by him from such trade or business is more than $1,800 and the net earnings from self-employment derived by him from such trade or business (computed under this subsection without regard to this sentence) are less than $1,200, the net earnings from self-employment derived by him from such trade or business may, at his option, be deemed to be $1,200; and

(iii) in the case of a member of a partnership, if his distributive share of the gross income of the partnership derived from such trade or business (after such gross income has been reduced by the sum of all payments to which section 707 (c) of Title 26, Internal Revenue Code of 1954, applies) is not more than $1,800, his distributive share of income described in section 702 (a) (9) of Title 26, Internal Revenue Code of 1954, derived from such trade or business may, at his option, be deemed to be an amount equal to 66% percent of his distributive share of such gross income (after such gross income has been so reduced); or

(iv) in the case of a member of a partnership, if his distributive share of the gross income of the partnership derived from such trade or business (after such gross income has been reduced by the sum of all payments to which section 707 (c) of Title 26, Internal Revenue Code of 1954,