If the reason
you are subleasing is because you have extra space and want to subsidize your rent
payments, then I would suggest you report the sublease income on Schedule E Supplemental Income and Loss(rental income),
and allocate a portion of the rental expense from your Schedule C Business Income
and Expense, to the rental income (Schedule E).
For example if
you sublease 20% of your business space, allocate 20% of your rental expense to
the rental income.
For more
information click on the following links:
IRS publication 334 Tax Guide
for Small Business, IRS
publication 17, Chapter 9 Rental Income and Expenses