I received a 1099-Misc for a roof grant through NC INSURANCE UNDERWRITING ASSOCIATION for a non-rental property 2nd. home we co-own with another family. The 1099-Misc only has our name on it since we were the ones negotiating the roof installation. It is my understanding that I must report this full value as income on my return. However, for all expenses associated with this property we split costs between owners. My question is how do I split this amount after reporting the full amount on my return? Is there a means to report half the amount of the roof cost as a deduction. In that the IRS receives a copy of the 1099-Misc. in my name I would think it would raise a red flag if I only reported one half the value on the 1099-Misc. as income.
Your thoughts are welcome
