In 2020 I changed a pasture over from gravity irrigation to sprinklers. We do run sheep and goats on those pastures, but I consider it an improvement to our place and didn't plan on declaring it as an expense on my taxes. The cost of the sprinklers is roughly twice our yearly gross income on the animals. I do complete a schedule F with my taxes. As part of the reduction in water usage our power company gave me a rebate in 2020 for 1800+ dollars and I received a 1099 from them. Do I need to declare the 1800 dollars as income even though I'm not declaring the expense to offset the income? What are my options?