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Airbnb Tax Deduction Checklist

Stop leaving money on the table. Select the expenses that apply to your rental and generate a personalized deduction checklist with estimated tax savings.

The Top 10 Tax Deductions Hosts Miss

After reviewing hundreds of host tax returns, these are the most commonly overlooked deductions. For the complete guide, see our Maximizing Airbnb Tax Deductions article.

  1. Platform Service Fees – Airbnb's 3-15% cut is a business expense
  2. Streaming Subscriptions – Netflix, Hulu, Disney+ for guest use
  3. Cleaning & Laundry – Even if you charge a cleaning fee, the expense is deductible
  4. Supplies & Consumables – From welcome wine to toilet paper
  5. Home Office Deduction – If you manage listings from a dedicated space
  6. Education & Research – Courses, books, and seminars on hosting
  7. Software Subscriptions – PriceLabs, Hostaway, accounting tools
  8. Depreciation – The "phantom expense" that reduces taxable income without affecting cash flow
  9. Section 179 for Furniture – Deduct the full cost of furniture in year one
  10. Merchant Processing Fees – Stripe/PayPal fees for direct bookings

The 14-Day Rule (Tax-Free Rental)

If you rent your personal residence for 14 days or less per year, you don't have to report the income to the IRS. It's completely tax-free. However, you also cannot deduct rental expenses for those days. This is popular during major events like the Masters or Super Bowl.

How to Prorate Deductions for Mixed-Use Properties

If you also use your rental property personally, you must prorate expenses:

Rental Use % = Rental Days ÷ (Rental Days + Personal Days)

Example: 100 rental days + 65 personal days = 60.6% rental use. Apply this percentage to shared expenses (mortgage interest, utilities, insurance).

Depreciation: The Big One

Depreciation allows you to deduct the cost of your building (not land) over 27.5 years. For a $300,000 property where 80% is building value:

  • Depreciable basis: $300,000 × 80% = $240,000
  • Annual depreciation: $240,000 ÷ 27.5 = $8,727/year
  • Tax savings (25% bracket): $8,727 × 25% = $2,182/year

Warning: When you sell, you'll face depreciation recapture taxes. Consult a CPA before claiming. Read more in our Host Tax Guide.

Record-Keeping Best Practices

  • Keep all receipts – Bank statements alone aren't sufficient for an audit
  • Use digital scanning – Apps like Expensify or Wave for cloud backup
  • Maintain a mileage log – Date, purpose, miles for vehicle deductions
  • Separate business accounts – Dedicated bank account and credit card
  • Track rental vs personal days – Essential for proration

For tracking, see our Expense Tracking Spreadsheet template.

Frequently Asked Questions

Can I deduct my mortgage payment?

Only the interest portion is deductible, not principal payments. Check your annual mortgage statement (Form 1098) for the interest amount.

What if I use a property manager?

Property management fees (typically 10-20% of gross rent) are 100% deductible as a business expense. This includes fees from channel managers and full-service PM companies.

Should I form an LLC for tax purposes?

An LLC doesn't change your federal tax treatment by default (it's a "disregarded entity"). It primarily provides liability protection. Consult a CPA for your specific situation.

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