I received a grant from Oregon Dept of Forestry to clear forest land for animal habitat and fire suppression purposes. I rcvd a 1099-G from ODOF covering the grant , showing only the amount provided, with no opportunity to include off-setting expenses in carrying out the terms of the grant. These expenses involved payment of salaries, equipment costs, etc. There is no asset appreciation or profit involved. This was done at ODOF's request. Are these expenses (which are documented) deductible? And if so, where and how do I account for them?
