It is a rebate, so you would not claim the rebate amount as income, rather you would reduce the expense you claim on the rental.
For example, the cost to landscape was 6,000, and the rebate was 500. Simply report 5,500 as the landscape expense on Schedule E.
The 1099-MISC would not be entered.
If you want to enter the 1099-MISC since the IRS MAY look for it, still reduce the expense on Schedule E and also negate the 1099-MISC.
Enter it this way:
Enter the 1099-MISC and then enter a negative offset:
Click on Federal on the left side-bar, then Wages & Income along the top.
When you get to the Income section, (you may need to click "Show All Income" first) Scroll down (go past Self-employment) to Other Common Income and Click Show more
Click Start for Form 1099-MISC and enter it
Enter a description for the non-work income, such as “Utility Rebate” for the reason and Continue
Click “None of these apply.” at the bottom of the list for “Does one of these uncommon situations apply? And Continue
Answer “No, it didn’t involve work like my main job.” on the next screen and Continue.
Answer “No, it didn’t involve an intent to earn money.” on the next screen and continue.
Do you have another 1099-MISC? Click No and Continue
Click Done.
The income will show as a line item on line 7a of your 1040.
Next, make the adjustment for the reduction in the expense claimed on Schedule E
Click on Federal,,,Wages & Income,,,,scroll down to the last section "Less Common Income"
Scroll down to the last choice "Miscellaneous Income, 1099-A 1099-C" and Start
Scroll down to the last choice "Other reportable income" and Start
For the Description enter "Reduction in utility expense for 1099-misc"
Enter the amount of the rebate AS A NEGATIVE NUMBER
(remember that you are also reducing the expense on Schedule E)
Click Continue and Done
The 1099-MISC and your adjustment will show on Schedule 1 line 8 and flow to line 7a the 1040.
This will zero out the original 1099-misc
Be sure you understand what you did and keep records with your tax file.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
