topic expenses related to taxable grants in Deductions & credits

expenses related to taxable grants

danwaid — Mon, 23 Feb 2026 13:14:31 GMT

I received a 1099-G forestry grant to clear my forest for fire danger. I hired a company to do this for the exact amount of the grant, and I was paid when they completed the work, after which I paid them the full amount of my grant. Where on Turbo Tax do I list this expense?

Re: expenses related to taxable grants

ThomasM125 — Mon, 06 Feb 2023 23:52:25 GMT

Unless you use the property for a business, such as forestry, the expenses would not be deductible. They would once have been allowed as miscellaneous itemized deductions, but that dedution is not allowed in 2022. You can read more about it here: Tax tips for forest landowners

"and conservation of the forest property. However, the 2017 Tax Cuts and Jobs Act (TCJA) has suspended “miscellaneous itemized deductions” for individual taxpayers through 2025."

Re: expenses related to taxable grants

danwaid — Tue, 07 Feb 2023 02:52:25 GMT

Thanks for your quick reply ThomasM125.

I was advised by both Oregon Department of Forestry as well as the Firewise Administrator in 2022 when this occurred that the state grant for defensible space clearing would be 100% offset by expenses by listing it in other or miscellaneous income under "not subject to self employment tax" but dont know where that is. Am I reading you correctly that there would be no adjustment allowed in federal or state taxes?

Thanks,

-dan

Re: expenses related to taxable grants

SantinoD — Tue, 07 Feb 2023 17:24:38 GMT

Since this grant is not considered "self-employment" income, it is true, this would be regarded as miscellaneous income and "not subject to self-employment tax". Miscellaneous income is taxed at your ordinary income rate, not considered self-employment income.

ThomasM125 is correct, 2017 Tax Cuts and Jobs Act suspended "miscellaneous itemized deductions" for individual tax payers through 2025.

@danwaid