When you are entering your 1099-MISC, there will be a screen that asks the Source of 199-MISC? Indicate that it is: Nonbusiness income from the rental of personal property or equipment. The $2,500 will be added to Schedule 1 (1040), line l as other income. It will flow to Form 1040, Line 9. It will not generate any other schedules, forms, or worksheets to fill out. It may not really be rental income, but that's the way it's reported on the 1099-MISC, and has no negative effect on your tax return, other than being taxable income.
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