I got a Downtown Development District Grant from the state for 20% of the cost of rehabilitating a rental property. I received a 1099 MISC using Block 3. I want to connect this to the rental property on the return but I don't see how to do this, as it is not rental income. I also am worried that I will owe Social Security tax on the grant. My question is, how do I deal with this on my return?
