The apparent position of the Internal Revenue Service in audits and in informal communications from the National Office in recent months has been that all leases of personal property produce income subject to self-employment tax.1 The note on Part I of the 1992 edition of Schedule E, Form 1040, that taxpayers are to "report income and expense from the rental of personal property on Schedule C or C-Z" has provided confirming evidence of the IRS position. This is particularly important to farmers who lease farm machinery in retirement to a tenant.