Tax on reward for reference

[PRIYA]

Spoiler

My client got a reward of $500 in the form of rent reduction for referring a friend to the rental office.

Should I include this as income on Schedule B?

[sjrcpa]

Schedule B is for interest and dividend income.

Was the rent reduction on their personal residence or a business property?

[PRIYA]

Rent reduction was for personal property, one time discount of $500 for reference.

[BobKamman]

Doesn't make any difference whether personal or business, it's income.  Just because they kept it under $600 to avoid issuing a 1099, doesn't matter.  

[PRIYA]

Thanks. Where do you suggest I declare it.

[BobKamman · Accepted solution]

Line 8z, Schedule 1.  Or you might want to use Line 8i, so you don't need to enter an explanation.  

[PRIYA]

Thanks, highly appreciate 👍