Technically, you can just ignore the 1099-MISC and only enter the actual rent that you received. But if you do that, you WILL receive a notice from the IRS trying to "correct" it.
One option is to report the amount in Box 7 as "Self Employment" income, then enter an equal deduction to zero it out (resulting in a $0 self-employment profit). The other option is to file your tax return without that amount from Box 7, and then respond to the IRS notice when you receive it.
