Palantir’s CEO Bought 37,000 Acres of Swedish Forestland and Hunting Leases Vanished. Five Years of Rent Can Count as $0 Toward Social Security’s Earnings Test
When Palantir’s CEO quietly bought 37,000 acres of Swedish forest and shut out local hunters, it revealed something most landowners never consider: a single hunting lease can hit three separate government clocks at once, and the order you get paid…
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Palantir (NASDAQ:PLTR | PLTR Price Prediction) CEO Alex Karp has reportedly scooped up around 37,000 acres of Swedish forest for about $22 million. Local hunters found out the land had changed hands when they were told they could no longer lease it for hunting. Fortune says the prior hunting agreements ran about 11 months and could be renewed annually. The deal shows that the right to hunt on rural land makes money of its own, apart from the trees.
Imagine a 64-year-old woodland owner leases hunting rights on his land. A hunting club offers $50,000 upfront for five years of access. One landowner with 110 acres was told to expect a few thousand dollars a year.
That rent might count as $0 in earnings for Social Security, while the IRS can tax all $50,000 in one year.
Why the Earnings Test Skips Hunting Rent
The retirement earnings test applies. In 2026, Social Security holds back $1 for every $2 he earns above $24,480. The test counts wages and net self-employment earnings. Ordinary rent from real estate generally falls outside both.
Say he makes $20,000 from a part-time job. Only that $20,000 counts toward the test, even though $70,000 in cash came in that year. His benefits are not held back.
A Five-Year Lease Can Trigger a Tax Bill in One Year
Advance rent is taxed in the year you receive it, even when it covers future years. In economic terms the deal is worth $10,000 a year. On his tax return, all $50,000 lands at once.
That matters because of how Social Security benefits get taxed. The IRS generally adds adjusted gross income (AGI), tax-exempt interest and half your Social Security benefits to determine combined income. For a single filer, up to 50% of benefits can be taxed once combined income passes $25,000. Above $34,000, up to 85% can be taxed.
Take a simpler case with no job. He collects $30,000 a year in benefits and has $10,000 of other income. Half his benefits plus that income sets combined income at $25,000, where taxes on benefits begin.
Add the rent and combined income jumps to $75,000. Up to $25,500, or 85% of his Social Security, can be taxed. The earnings test ignores the rent, but it still draws most of his benefits onto his tax return.
Medicare Premiums Can Feel It Two Years Later
Higher-income Medicare enrollees can pay IRMAA, an extra monthly charge added to Part B and Part D premiums. Medicare generally uses tax information from two years earlier, and in 2026 IRMAA starts once a single filer’s modified adjusted gross income exceeds $109,000.
At that level, the Part B premium rises from $202.90 to $284.10 a month, and Part D adds $14.50.
In the simple example, he likely stays under that line. Add a pension or a large IRA withdrawal, and a one-time payment can push him over. The deal runs on three clocks: the earnings test now, income tax this year, and Medicare premiums two years out.
Why $50,000 Upfront Can Cost More Than $10,000 a Year
Either way, the rent likely stays outside the earnings test. Taking it all upfront packs five years of income into one tax return, which can make more of his benefits taxable and raise the chance of an IRMAA surcharge. Annual payments spread the income out. If he expects his income to rise later, once required withdrawals from retirement accounts begin, taking the cash now could cost less in tax (we mapped this and eight other quiet IRS rules that drain retirement accounts in a free guide here).
A simple lease that only grants access generally produces rental income. If he provides substantial services for the hunters’ convenience, such as guided hunts, lodging or transportation, the income can move toward business treatment and may count as self-employment earnings under the earnings test.
Five Details to Settle Before You Sign a Hunting Lease
- Payment schedule: Take the money upfront or yearly? Run his tax return both ways before agreeing.
- Payment type: Is it advance rent or a refundable deposit? A deposit he may have to return is treated differently from rent he keeps.
- Services: Does the lease cover access only, or extras like guided hunts? Adding services can move the income into self-employment territory.
- Combined income: Where does $50,000 put him compared with the $34,000 line? Past it, up to 85% of benefits can be taxed.
- Medicare: Could this spike, added to his other income, push him over $109,000 and raise his premiums two years from now?
Karp’s purchase shows that hunting rights can be worth real money. The way the payment is set up matters most. A short meeting with a tax preparer before signing can show which setup costs him less.
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