When reporting the sale of your Rental Property, you can add the Rent Rebate you paid the buyer to your Sales Expenses. This would reduce your gain on the sale.
Or, you could add a Rental Expense for 2022 as a Miscellaneous Expense with notation of 'Pro-Rated Rental Rebate.' This more reflects what actually happened; you received the rent, then paid part of it out. This would reduce your Net Rental Income for 2022, and reduce your taxable income.
Or, you can enter the amount of Rental Income reported on your 1099-Misc as $800 less, to reflect what you actually received.
Any of these methods is acceptable to the IRS. Save documentation that you paid the buyer the $800.
@Dave918
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