Great, thank you so much for the feedback. This makes the most sense to me as I don't believe this should be treated as pure income nor should it be completely tax free, but instead should be incorporated into the basis/return of the investment. By following the instructions here (https://ttlc.intuit.com/community/taxes/discussion/1099-misc-box-3-other-income/00/2402716#:~:text=Y....),
TT shows the offset with my explanation right below the reported 1099-misc entry in schedule 1.
I will continue to follow this thread in case there is any other input, but if none this seems a viable approach to address this situation. Thank you!!
@RobertB4444
