You would need to declare income as IRS has just about unlimited power to ruin lives and businesses. Fines, penalties, and interest accruals all stack up together for horrendous cost. They have power above all else and going b.k. won't protect you. It's hilarious to read posts describing the wondrous IRS as getting some money back. Within reality it's a plague upon society and dangerous. Think about the cost vs advantages. Most citizens fear IRS above all. You do realize Founding Fathers documents put forth a definition of gov't to further the enjoyment of its citizens. Why have we created such a beast? Class warfare? Getting a payoffs? Politics? Ya, pretty much all of that....it's the darkest of humanity thinking wrong headed. Much better ways to finance gov't. Much more cost efficient methods which would do away with the whole horrible process. We desperately need better education and bring intelligence society together to improve our lot and in doing so increase quality of life. We should demand cost effective and efficient gov't. We should demand more freedoms and more personal responsibilities. If your not planning on becoming a long term Landlord and it this is a temporary status, just declare income as "other". You won't be able to depreciate, but that will be captured later anyways under capital gains. You may very well have lower tax rate now. Also, the tax rate in country is expected to explode in future. So better take income now may be the smartest tactic. But who knows....you see another disadvantage of Income tax system is politicians are pulling tricks trying to manhandle economy and livelihoods in attempt to get re-elected....it really is a horrible process. Politicians always mess with the economy to gain fame (right or wrong) and in process always damage economy. Nothing smarter than a well informed consumer public armed with easy and accurate consumer info to make investment and purchasing decisions. This is well documented the intelligence of the educated masses. Regulations need to tweaked continually to ensure effectiveness and simplicity.
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