Investors & landlords

That's hard to say. Grants can be handled many different way.  

I did find information about a program like that. It seems the Grant comes from the Federal Government and goes to the State. The State allocates it out. 

I assume the group that allocated the funds to you should have reported it on a 1099-G. 

You can ask for the funds to be reported on a 1099-G instead, but that might be hard to get done. 

If the form was issued to the business, you would enter it as income, and then enter the same amount as a loan expense. 

If it is issued to you personally you could enter the 1099-MISC and then enter a second entry to take it out of your personal income. 

Be sure you enter the 1099-MISC as "Other Common Income" and not as self-employment if you're claiming this on your personal 1040. You don't want it to generate Self-Employment tax and you don't want it included as part of a Qualified Business Income Deduction. 

After entering the 1099-MISC, please follow these steps:

Sign into your account and your return

Type   other reportable income   into the Search Box and click the “Jump to other reportable income” link

-OR-

Click Federal on the left side-bar

Click Wages & Income along the top

Scroll down to the last section Less Common Income and click Show more to open drop-down

Scroll down to last section Miscellaneous Income and click Start

Scroll down to the last section Other reportable income and click Start

Enter the description as “Building Rehabilitation Loan reported on 1099-MISC” and the amount as a negative number (be sure to make it negative)

This negative amount will be entered on line 21 to offset the 1099-MISC

Building Rehabilitation Grants