Thanks for all the advice. I understand this is an unusual situation where is it clear I do not have to report the income (Pub 527), but I have received a 1099-MISC for that income. I feel like NOT reporting it will immediately draw a reaction and question from the IRS. Yes, I do have a valid explanation, but would rather not even get the inquiry. So, I will report the income so it doesn't look like I am ignoring it. The question is the best way. It can either be with a Schedule E and just say my rental days are 365 (or 13) and personal days 0 and net the Schedule E to $0 with an explanation of using the Augusta Exemption 280A(g) or putting it in miscellaneous income with a description explaining why it is not on Schedule E. I think since the 1099-MISC uses box 1 (Rents) my best bet would be to use the Schedule E and net it to zero. The only thing inaccurate is having the personal days as 0. I still may be questioned, but it would likely not be as automatic as not including the income as Pub 527 suggests. Thanks again.
