@lauramari_s wrote:
I think it goes for the HUD inspection. I’m going to get some clarification. Thank you! Your questions help me!
Under a required webinar for the grant I saw this:
Some of the grant will go to apparently unavoidable admin costs when you work with HPP CARES (~2500 for HPP CARES, ~2500 "holdback" for HUD inspections, and ~2k for the escrow
Any money that benefits you is going to be taxable to you even if it doesn't pass through your hands. A mandatory fee that is taken off the top is probably not taxable to you, but if money is held back to pay for an inspection, applications fees, or other costs that you would have been required to pay for your ADU project anyway, then that should be considered taxable to you. I can't find out enough about the program to tell you what part might be excludable, I think you need more information about the costs and what is being paid on your behalf.
Once you determine the excludable amount, you can make an adjustment in any version of Turbotax without overriding. After entering the 1099-MISC, go back to Other Income and enter an item of other income in a negative dollar amount to offset the income. Use a description like "excludable mandatory fees".
