Or option C which is the conclusion I've come to after much research is ignore it (no place to enter it anyway on the 1040 Schedule E and even if Turbo Tax tries to through a worksheet in the mix it is not how you report your rental income on Schedule per IRS rules).
IRS will get a copy and should know the 1099-K will have other monies not reportable as rental income, it was a new requirement placed on electronic money transfers and is subject to accuracy issues. Just keep it with your taxes if the IRS has any questions. I am not going to put arbitrary information in my taxes not previously reportable per the IRS.
