I need to add a well used shield to my character that will only provide a +1 to my AC instead of +2.

Is this possible with homebrew? Is there an easier way?

Add custom item for the shield to factor weight.

Click AC and add 1, noting it is from the shield.

Thanks for the response,

Is this where you're telling me to add an item?

It's confusing because that's listed as "Magic item."

If that's the correct place, how can I make sure my character sheet doesn't treat it as a magic item?

I believe they were saying add it to your character sheet directly. Click your armor and add +1 to misc bonus and type shield beside it. Also click your equipment (won't work in containers currently), expand the contents and at the bottom click add custom item. Then rename the custom item to something like "damaged shield" or whatever you would like to call it and add the weight. Currently that is the only way to add non-magical items to my knowledge.

If you ever remove the shield you will have to remember to manually remove it from your armor as well.

Found it, thanks for helping clear up my confusion :)