# SSR 61-45: SSR 61-45. RENTAL OF CONSTRUCTION EQUIPMENT > Federal · Rulings · In force URL: https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_45 ## Section - **Citation:** SSR 61-45 - **Heading:** SSR 61-45. RENTAL OF CONSTRUCTION EQUIPMENT - **Jurisdiction:** Federal - **Kind:** Rulings - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Social Security Rulings / OASI / Self-Employment / SSR 61-45 ## Text Held , such individual was engaged in a trade or business, within the meaning of section 211(c) of the Act, in 1959 and 1960, and the income he derived therefrom in those years is includible in computing his net earnings from self-employment for social security purposes. M filed application for old-age insurance benefits in March 1961. Since M was born in 1889, he needed six quarters of coverage to become entitled to benefits. He stated he had acquired the necessary quarters of coverage from self-employment during 1959 and 1960 by engaging in the business of renting construction equipment. In 1959 M purchased a bulldozer for $16,000 on a conditional sales contract. M rented the bulldozer to the X Construction Company for $600 per month under a contract whereby M was to pay for necessary repairs and insurance on the bulldozer, and the X Company was to pay the ordinary running expenses. M paid the monthly installments on the bulldozer under the conditional sales contract as well as the insurance, and in 1960 he also paid for general repairs to it. In January 1961 M purchased two more bulldozers which he rented to the X Company under terms similar to those of the first contract. At no time did M try to rent his equipment to any firm or person other than the X Company. M derived a net profit of $1,900 from the operation if 1959 and a net profit of $3,800 in 1960. The question is whether these amounts derived in 1959 and 1960 may be included as net earnings from self-employment to old- age insurance benefits. This, in turn, depends on whether M was carrying on a trade or business in 1959 and 1960, since under section 211(a) net earnings from self-employment must be derived from a trade or business. Section 211(c) of the Act provides in pertinent part: In determining the existence of a trade or business, factors taken into consideration include: (1) whether the activity was initiated and performed with a profit motive; (2) whether it was regular and continuous; ss in 1959 and 1960, since under section 211(a) net earnings from self-employment must be derived from a trade or business. Section 211(c) of the Act provides in pertinent part: In determining the existence of a trade or business, factors taken into consideration include: (1) whether the activity was initiated and performed with a profit motive; (2) whether it was regular and continuous; (3) whether it was engaged in as a regular occupation or calling; (4) whether the individual held himself out to others as being engaged in the selling of goods or services. No single factor is controlling, and each case must be resolved on its own merits with due consideration of the entire factual situation. In the present case, M initiated and carried on his activity for the purpose of making a profit. M's dealings with the X Company required a continuity and repetition of transactions and negotiations on the purchase, financing, leasing and repair of the equipment. Further, these dealings were carried on over a period of several years and involved equipment which, with the purchase of the two bulldozers in 1961 was valued at approximately $50,000. M's purchase and rental of only one piece of equipment in 1959 and 1960 might of itself be regarded as an isolated transaction which would lack the continuity and regularity of transactions necessary for the existence of a trade or business under section 211(c). However, his acquisition of additional equipment and his continuing rentals in 1961, though occurring after the period in question, support his allegation that his original intention was to engage in a trade or business, and clearly evidence the necessary continuity and regularity. ity and regularity of transactions necessary for the existence of a trade or business under section 211(c). However, his acquisition of additional equipment and his continuing rentals in 1961, though occurring after the period in question, support his allegation that his original intention was to engage in a trade or business, and clearly evidence the necessary continuity and regularity. Accordingly, it is held that M was engaged in a trade or business within the meaning of section 211(c) of the Act in 1959 and 1960. The income he derived from the business in those years in thus includible in computing his net earnings from self-employment. Therefore, M is entitled to the old-age insurance benefits for which he filed application. ## Nearby sections - [SSR 60-27 SSR 60-27. ADMINISTRATOR OR EXECUTOR -- MARSHALLING AND DISTRIBUTING ASSETS OF SINGLE ESTATE](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_60_27.md) - [SSR 61-7 SSR 61-7. FARM RENTAL INCOME -- MATERIAL PARTICIPATION](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_7.md) - [SSR 61-28 SSR 61-28. SOIL BANK PAYMENTS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_28.md) - [SSR 61-29 SSR 61-29. JOINT OWNERSHIP OF FARM](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_29.md) - [SSR 61-42 SSR 61-42. RENTAL VALUE OF ROOM OCCUPIED BY OWNER-OPERATOR OF ROOMING HOUSE](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_42.md) - [SSR 61-43 SSR 61-43. ADMINISTRATOR OR EXECUTOR -- OPERATION OF BUSINESS AMONG ASSETS OF ESTATE](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_43.md) - [SSR 61-44 SSR 61-44. PERSONAL SERVICES PERFORMED FOR FAMILY MEMBER OF CLOSE FRIEND](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_44.md) - [SSR 61-45 SSR 61-45. RENTAL OF CONSTRUCTION EQUIPMENT](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_45.md) - [SSR 61-62 SSR 61-62. INCOME FROM BUSINESS OPERATED BY LEGAL GUARDIAN OF INCOMPETENT](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_62.md) - [SSR 62-17 SSR 62-17. NET EARNINGS FROM SELF-EMPLOYMENT -- PARTNERSHIP -- HUSBAND AND WIFE](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_17.md) - [SSR 62-31 SSR 62-31. NET EARNINGS FROM SELF-EMPLOYMENT](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_31.md) - [SSR 62-32 SSR 62-32. SELF-EMPLOYMENT INCOME -- OPTIONAL METHOD OF REPORTING FARM SELF-EMPLOYMENT](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_32.md) - [SSR 62-48 SSR 62-48. NET EARNINGS FROM SELF-EMPLOYMENT -- RENTALS FROM REAL ESTATE](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_48.md) - [SSR 62-49 SSR 62-49. NET EARNINGS FROM SELF-EMPLOYMENT -- RENTALS FROM REAL ESTATE -- ROYALTIES FROM USE OF OIL LANDS](https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_62_49.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/SSA_SSR_OASI_SSR_61_45. Check the current official text before relying on it. Not legal advice.