Client has a 3-unit property that he reports on Schedule E. In 2023, two of his tenants were approved under the Asylum Seekers Emergency Rental Assistance Program. My client (the landlord) received these payments in 2023. Where do I report the payments on client's tax return? Is this reportable under IRS 1040 and IL1040? Please advise. 

Lastly, he also has an Airbnb in TN and in FL. Do I also have to file taxes in each of those states even if it was a net loss?