Deductions & credits

Retain the form in your tax file and you can respond should you receive any letter from the IRS later.  This is option one.

Option Two:

Enter the 1099 as miscellaneous or “other“ taxable income. Then go back to the other taxable income section and create a new item of other income in a negative amount (minus sign) to offset the income from the 1099. Label the negative item as something like 'Property cost adjustment'. You will be able to e-file. As indicated, keep the document and detail in your tax papers for at least three years after your filing due date.

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Other Miscellaneous Income:

Go to the Wages and Income  section of TurboTax

1. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
2. Select Other reportable Income > Enter a description (----) and the amount

@karthio