In your situation, you would NOT use the steps outlined above since it was income from your renal.
Enter the 1099-MISC and direct it as rental income to be reported on your schedule E.
Next, enter the amount of the repairs as an expense for the rental on your Schedule E.
Since you indicate that the repairs were more than the security deposit, the income from the security deposit will be zero'ed out on your Schedule C once the expense for the repair is entered.
@Missgidgett
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
