The Complete List of STR Tax Deductions (What Airbnb Hosts Can Write Off)
Disclaimer: This is educational content, not tax advice. Consult a licensed CPA for your specific situation.
Short-term rental hosts have access to a significant set of tax deductions — in many cases more than traditional long-term landlords. But most hosts claim only the obvious ones (cleaning, platform fees) and miss 30–40% of what they're legally entitled to.
Here's the complete picture.
First: Schedule E or Schedule C?
The schedule you file on determines what's available to you.
Schedule E (Passive) is used by most STR hosts — those whose average guest stay is 7 days or more and who don't provide substantial hotel-like services. Benefits: no self-employment tax (saves 15.3%), passive income treatment.
Schedule C (Active Business) applies when your average stay is under 7 days or you provide significant services (meals, concierge, daily cleaning). Drawback: 15.3% self-employment tax on net income. Benefit: can offset other income if you materially participate.
Ask your CPA which applies to you before filing. Getting this wrong is one of the most common and costly STR tax mistakes.
The Complete Deduction List
Direct STR Expenses (100% Deductible)
These are deductible in full if they relate exclusively to your rental:
| Deduction | What to Track |
|---|---|
| Platform fees (Airbnb, VRBO) | 1099-K statements |
| Cleaning/turnover costs | Receipts, Venmo/Zelle records |
| Supplies (toiletries, coffee, paper goods) | Receipts |
| STR insurance premiums | Insurance statements |
| Property management fees | PM company statements |
| Advertising/photography | Receipts |
| Software subscriptions (Hospitable, PriceLabs, QuickBooks) | Monthly statements |
| Linens, towels, bedding | Receipts |
| Welcome gifts and guest amenities | Receipts |
| Smart locks, noise monitors, security cameras | Receipts |
| Professional fees (CPA, attorney for STR matters) | Invoices |
Proportional Expenses (Deductible Based on Rental Use %)
For properties with mixed personal/rental use, you prorate based on: Rental Use % = Nights Rented ÷ Total Nights Available
| Deduction | Notes |
|---|---|
| Mortgage interest | Form 1098 from lender × rental % |
| Property taxes | Tax statement × rental % |
| Utilities | Electric, gas, water, internet × rental % |
| HOA fees | HOA statements × rental % |
| General repairs and maintenance | Receipts × rental % |
| Home office (if managing from home) | % of home used exclusively for STR management |
Depreciation (Non-Cash but Powerful)
Depreciation lets you deduct the cost of your property over time — without spending additional cash.
- Building depreciation: (Purchase price × ~80%) ÷ 27.5 years for residential
- Furniture (5-year life): Couches, beds, dressers, TVs
- Appliances (5–7 year life): Washer, dryer, refrigerator
- Section 179 / Bonus depreciation: May allow 100% deduction in year of purchase for certain assets — a major tax benefit worth asking your CPA about
- Cost segregation study: For properties over $500k, a cost seg study can accelerate depreciation significantly by reclassifying building components to shorter depreciable lives
Often-Missed Deductions
- Mileage: Trips to the property, hardware store, supply runs — track with MileIQ or Google Sheets (standard rate: $0.67/mile in 2024)
- Subscriptions: Amazon Prime (if buying supplies), Canva (marketing), any STR education tools
- Education: Books, courses, conferences about STR investing or management
- Bank fees: For accounts used for STR income
Quarterly Estimated Tax Payments
STR income is not automatically withheld. If you expect to owe $1,000+ in federal taxes for the year, you're required to make quarterly payments:
- Q1 (Jan–Mar): Due April 15
- Q2 (Apr–May): Due June 17
- Q3 (Jun–Aug): Due September 16
- Q4 (Sep–Dec): Due January 15 of next year
Safe harbor rule: Pay 100% of last year's total tax liability in equal quarterly installments and you cannot be penalized for underpayment — even if you owe more at filing. (110% if prior-year AGI exceeded $150,000.)
The Record-Keeping System That Makes Tax Time Easy
The hosts who pay the least in taxes aren't necessarily the ones who earn the least — they're the ones who track everything and show up to their CPA with documentation.
What to keep (for 7 years):
- All income records and 1099-Ks
- Receipts for every expense
- Rental calendar showing booked vs. personal-use nights
- Mileage log
- Contractor payment records (anyone paid >$600 may need a 1099-NEC)
- Photos of capital improvements
The STR Tax Prep Guide walks through all of this with a printable CPA prep checklist and a full deduction tracker — available as part of the HostKit Bundle.