Many common Airbnb expenses can be deducted to lower taxable income, helping you save money and keep more of your profits.
Tracking deductions year-round prevents missed opportunities and helps you prepare for tax season with fewer surprises.
Even small costs add up to meaningful tax savings, but proper documentation is key in case of an audit.
Every year, thousands of Airbnb hosts leave money on the table simply because they don’t know what they can deduct. For short-term rental hosts trying to grow with limited time and resources, missing out on deductions means leaving profit behind.
Tax deductions are not loopholes, they’re legitimate business expenses that reduce your taxable income. The key is knowing what counts, keeping solid records, and applying deductions consistently across your properties. Yet, that’s where many new hosts fall short, especially when juggling turnover, guest messaging, and property maintenance on top of their day jobs.
This guide breaks down 10 Airbnb tax deductions most hosts forget to claim, helping you improve the profitability of your STR business and keep more of your profits.
Profit margins in short-term rentals often shrink faster than expected. Between platform fees, rising utility bills, vanishing linens, and broken lamps, every expense adds pressure. Airbnb tax deductions give short-term rental hosts a way to lower taxable income and keep more of what they earn.
Tax deductions are the expenses you subtract from your rental income before calculating how much tax you owe. Think of them as the costs of doing business, like cleaning crews, linens, utilities, even the subscription for your property management software.
For Airbnb hosts, deductions can cover everything from mortgage interest to guest toiletries. The key is that the expense must directly support the operation of your short-term rental. When tracked properly, deductions lower your taxable income and can save you a significant amount come filing season.
Many hosts miss out on legitimate write-offs simply because they didn’t keep receipts or split personal and rental use correctly. If you’re buying supplies for multiple properties or running ads across several markets, log which expense belongs to which listing. Accurate records mean fewer headaches if the IRS asks questions later and more money left in your pocket!
Manage short-term rentals & bookings, message guests, take payment, and so much more. All in one easy-to-use platform (that never double-books).
So what's a legitimate tax deduction? Let's take a look at 10 of the most overlooked deductions that every Airbnb host should know.
Depreciation is the process of spreading out the cost of a property or big-ticket item, like furniture or appliances, over its useful life for tax purposes.
For Airbnb hosts, it’s a powerful deduction because it lets you claim a portion of your property’s value each year, lowering taxable income even when no cash is actually spent.
Depreciation often sits untouched on tax returns because it’s not as obvious as a receipt. You can’t write off the entire cost of a rental property in one year, but you can slowly deduct the building’s value over 27.5 years. That means a long-term tax benefit without much effort, if you track it properly.
Big upgrades like a new HVAC system or kitchen remodel fall into a different category than day-to-day fixes. Repairs reduce taxable income in the year they happen. Improvements stretch over time. For larger projects, cost segregation breaks out parts of the property (appliances, flooring, fixtures) so you can write them off faster.
Beds, sofas, bar stools, kitchen knives, plates, and laundry hampers all count as legitimate business expenses when tax season rolls round.
If a guest uses it, you can probably deduct it. Outfitting a new listing or refreshing a tired space adds up quickly, so hold onto those receipts and you might be surprised at what you spend in the year.
New purchases typically go on the books the same year. Replacing a broken coffee maker? Deduct the full cost. Buying an entire new dining set? That might fall under depreciation. The key is tracking what you buy, when you buy it, and which property it belongs to, and asking for expert advice if you need.
A successful rental property needs a lot more than furniture and kitchenware. There's a lot of untangible business expenses that all count towards your tax deductions.
Cleaning a unit before the first booking hits the calendar is a deductible expense. So is professional listing photos, digital ads, and any staging or prep work needed to get the property ready for guests.
Startup expenses often slip through the cracks because the property isn’t earning income yet. But the IRS allows you to deduct up to $5,000 in first-year startup costs. The rest rolls out over time. As long as the expense directly prepares the property for rental, it qualifies.
It's not just the pre-work that counts as a deduction.
Guest turnover means constant cleaning, and that means plenty of write-offs. Whether you pay a professional cleaner or buy supplies and do it yourself, both approaches cut your tax bill.
Maintenance expenses also get deducted in the year they occur. Lawn care, snow removal, pest control, and HVAC servicing all qualify. Just separate personal from business use when the property isn’t fully dedicated to short-term rental. Keep a simple log with dates, vendors, and amounts. You’ll thank yourself later.
Mortgage interest is deductible, but only the interest portion, not the payments you make towards the principal.
For short-term rentals, you can write off the percentage tied to rental use. Full-time STRs get full deductions. Shared spaces need a split based on time or square footage.
Homeowner’s insurance, STR-specific coverage, and even umbrella policies are all deductible. Property taxes also make the list, but only the portion tied to rental activity. If you live in the property part-time, you’ll need to divide the deduction based on usage.
Managing a short-term rental often means hours spent coordinating cleaners, responding to guests, and reviewing listings. If you use a dedicated home workspace for those tasks, you can deduct a portion of housing expenses.
The IRS only allows this if the space is used regularly and exclusively for rental activities. A desk in the corner of the living room doesn’t count. But a spare bedroom used only for managing listings and logging receipts? That does.
But how much can you really deduct? Well, you can use a simplified square footage method or track actual expenses like electricity and internet, then deduct a portion to account for your home office space.
Driving to pick up linens, drop off a new set of keys, or restock paper towels? Track your mileage. Visiting a property in another city to meet contractors? Flights, hotel nights, and transportation costs all count.
To stay compliant, document who went, where you went, when, and why. Personal travel mixed with business needs to be clearly separated. A weekend getaway that includes a quick property check won’t qualify. But a trip planned specifically for STR management will.
Every time a platform takes a cut of your booking, you can deduct it. Same goes for credit card processing fees, refund charges, and transaction costs across payment providers.
Most platforms offer monthly or annual statements. Download and store them as you go. Don’t rely on year-end summaries, they often round numbers or miss smaller adjustments. Your accounting records will be much cleaner if you handle it monthly.
Paying for tax advice, hiring an attorney to review lease terms, or using accounting software to track income and expenses? Those services support your rental business and reduce your taxable income.
Meetings with a CPA, consultations about STR regulations, and even freelance help for bookkeeping are deductible. Just make sure the services directly support your short-term rental operations, not your personal finances.
Storm damage, fire, vandalism, or theft during a guest stay could lead to a deduction. If you’re not reimbursed through insurance or a platform, the loss may qualify.
To deduct it, document everything. Photos, receipts, insurance paperwork, police reports, whatever applies. The IRS expects proof of value and timing. You can’t claim gradual damage or general wear, but a broken window from a guest’s party? That’s fair game.
Before deducting anything, you first need to know if your rental activity even counts as a rental property, and that means brushing up on Airbnb income tax classifications.
Not every Airbnb qualifies as a business for tax purposes. The IRS draws a line, and it’s 14 days long.
Rent your place for 14 days or fewer in a year and use it yourself the rest of the time? You don’t owe taxes on the income, but you also can’t deduct any expenses. Once bookings go over 14 days or your personal use drops below 10% of the time the property’s available, the IRS treats your rental as a business.
That’s when the real tax benefits begin.
Renting part of a property, like a basement apartment or a guest room, means you can't deduct every shared expense. You’ll need to split costs based on how much of the space is rented or how often it’s booked.
Say the guest suite covers 25% of your home and is available half the year. That means you can deduct 12.5% of the electric bill, internet, and other shared services. You can base the calculation on square footage or number of rental days, but pick one and apply it consistently.
Here are some common shared expenses that require a split:
Utilities: Electricity, water, gas, internet, trash pickup
Insurance: Homeowner’s or short-term rental policy premiums
Supplies: Paper towels, toilet paper, cleaning products used by both guests and household
Maintenance: Lawn mowing, snow removal, pest control for shared outdoor areas
Keep notes on how you calculate the split. The IRS won’t accept rough estimates scribbled during tax season.
Not every fix qualifies for a write-off right away. The IRS treats repairs and improvements differently, and getting it wrong can mean losing a deduction or worse: penalties.
Repairs restore the property to working condition. Think patching a hole in the wall, tightening a loose railing, or fixing a broken lock. You can deduct those costs in the year you pay for them.
Improvements are upgrades that add value or extend the property's life. Replacing old carpet with hardwood, renovating a bathroom, or installing a new HVAC system? Those costs need to be depreciated over several years.
Here’s a simple rule: if you’re fixing something to keep the place running, it’s likely a repair. If you’re upgrading to improve value or function, it probably counts as an improvement. Save receipts and keep a short description of what was done and why. A few extra notes now can save hours of back-and-forth later if questions come up.
Automated guest messages keep your guest informed from booking through to check-out. They’re designed to answer questions before they arise, saving you time whilst keeping your guests happy.
Tax deductions only help when you can prove them. Many Airbnb hosts lose money not because they miss opportunities, but because they can’t back up their claims. The IRS doesn’t go off memory or ballpark estimates. You need a clear paper trail with dates, amounts, and what the expense was for.
Paper receipts fade, tear, or disappear. Trying to piece together expenses from a pile of crumpled slips is a waste of time, and a risk if you're ever audited. Instead, snap a photo the moment a purchase happens and upload it to a cloud folder labeled by property and year.
Download PDFs of recurring bills like utilities or subscription services every month. Store them by vendor and date. This small habit makes tax prep faster and keeps everything clean if questions ever come up. For mileage, travel, or supply runs, log who went, where they went, and why. Property-specific folders help avoid confusion, especially when managing more than one STR.
The IRS doesn’t usually care about a few extra rolls of toilet paper. But inconsistent or vague deductions get attention. Hosts often get flagged for claiming 100% of a shared expense without supporting documents or labeling purchases as “miscellaneous” with no explanation.
Be specific. Break down costs by category (cleaning, repairs, guest amenities) and note which property and guest stay they relate to. For home office deductions, document the square footage. For shared utilities, write down the percentage used for rental activity and how you calculated it. If a deduction feels like a stretch, leave it out.
Some hosts qualify for the Qualified Business Income deduction, which cuts up to 20% from net rental income but not all short-term rentals meet the bar. The rental needs to run like a business, not just earn passive income.
If you regularly provide services like daily cleaning, guest support, or stocked kitchens, the IRS may consider your rental a business. If the property sits empty between guests with little involvement, that likely doesn’t qualify. You’ll need to document what services you or your team provide, how often they happen, and how they support the guest experience.
The QBI deduction applies to sole proprietors and pass-through entities. If your rental setup meets the requirements, this deduction can lead to real savings, but only if the records prove it. Small changes in how you operate could shift your eligibility, so it’s worth reviewing how hands-on your hosting actually is.
Juggling receipts in one folder, mileage in a notes app, and guest bookings in a spreadsheet you forgot existed? That’s how Airbnb tax deductions start slipping through your fingers.
Every year, short-term rental operators miss out on thousands in tax savings simply because they don’t know what to deduct or how to track it. From depreciation and cleaning supplies to travel expenses and home office space, these overlooked deductions can significantly reduce your taxable income and improve your bottom line.
However, vague deductions are more hassle than they're worth. Claiming the true value of tax deductions starts with accurate record-keeping, and that starts with property management software.
Sign up for Uplisting to manage short-term rentals without spreadsheets or scattered records. Your future self will thank you and so will your accountant.
It’s simple to automate repetitive tasks with Uplisting's short-term rental software. You’ll save hours every week and eliminate human error. Go ahead — take some time off.
Renting out a single room means you can only deduct the part of shared costs that actually supports the rental space.
You’ll need to figure out what percentage of your home the rented room takes up, either by square footage or number of rooms. If the room is 20% of your home and you rent it for half the year, you can deduct 10% of those shared expenses.
Just choose one method, stick with it, and be consistent year to year.
Renting out a property for 14 days or fewer in a calendar year, while using it personally the rest of the time, means you don’t have to report that rental income to the IRS and you can’t deduct any related expenses either.
Once bookings go over 14 days, or personal use drops below 10% of the time it’s available, the property becomes a taxable rental. At that point, you can start claiming Airbnb tax deductions.
Service fees from booking platforms are fully deductible, as long as the income from the booking gets reported.
That includes host fees, payment processing fees, and refund-related charges. If a guest cancels and the platform keeps a portion of the fee, you can still deduct it.
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