Hello, I have a question that I need classify on.

Hello, I have a question that I need classify on.

Should I classify under "other?" 

The person I spoke with essentially stated he didn't know but assumed any activity or service that was not classified as "a professional service" would be subject to the tax. 

@Thomas S.... even though 85% of my rentals are not section 8 I would not classify the people how you are.Here's the deal.... trash is trash... it doesn't matter if they are white or black.

I would classify this property as cash flow negative even at 80% LTV.I am assuming that the only value add is adding the 1 BR/1 Ba which I think you cannot add. 

Look at Legal Notices under the classified section.

It's questionable whether the IRS would classify this as a 'hobby' instead of a trade or business as its not continuous. 

@James Webb The only way you could reduce that income is if it was truly passive income or you are classified as a real estate professional.

There may also be tax ramifications to you on your 1040 under this scenario for the payment.Your fishing activity is most likely classified as a hobby.