Top AirBnB Host Tax Deductions

Running an AirBnB business means you can deduct many expenses that reduce your taxable income. These deductions help offset your costs and improve your profitability. Here are common tax deductions for Airbnb hosts to consider.

Home expenses

If you rent out a portion of your home, you can deduct part of your household expenses.

Examples include:

• Mortgage interest or rent payments
• Property taxes
• Homeowners insurance
• Utilities like electricity, gas, water, internet
• HOA or condo fees

You can generally only deduct the portion of these expenses that applies to the space and time the property is used for guests.

Depreciation

When you own the property you rent, you can claim depreciation.

What this means:

• Spreading the cost of your property (excluding land) over its useful life.
• Reducing your taxable income each year you claim it.

Major improvements and renovations can also be depreciated. Claiming depreciation may reduce your taxes now, but it can affect your taxable gain when you sell the property. Depreciation rules can be complex, so many hosts consult a tax professional for accurate calculations.

Cleaning and maintenance costs

Keeping your space guest-ready is a necessary business expense.

Deductible costs include:

• Professional cleaning services
• Cleaning supplies
• Routine repairs and maintenance directly related to hosting

Supplies and amenities

Expenses for making guests comfortable are deductible.

Examples:

• Toiletries and paper products
• Coffee, tea, bottled water
• Linens and towels
• Small appliances used for guests

Keep receipts and track how much you spend on supplies for your rental.

Advertising and listing fees

Promoting your Airbnb listing costs money.

Deductible expenses include:

• Airbnb platform fees or service charges
• Advertising on other booking sites
• Paid marketing like social media ads or photography services

Insurance

Insurance specifically covering your rental activity is deductible.

Examples:

• Additional liability coverage for guests
• Short-term rental policies beyond standard homeowners insurance

Only the portion related to your rental activity is deductible if the policy also covers personal use.

Professional services

If you hire help to manage your hosting business, you can deduct those costs.

Examples:

• Accounting or tax preparation fees
• Legal consultations
• Property management fees

Utilities and internet

If you rent out a portion of your home, you can deduct part of your utility bills.

Examples:

• Electricity and gas
• Water and trash services
• Internet costs used by guests

Allocate the deduction based on the rental portion of your home.

Furniture and decor

Furnishing and decorating your rental space is essential for attracting guests.

Deductible items may include:

• Beds, sofas, tables, chairs
• Lamps and lighting
• Wall art and decor
• Kitchenware for guest use

Lower-cost items may be expensed immediately, while higher-cost furniture is typically depreciated.

Platform fees and commissions

Airbnb charges hosts service fees for each booking. These platform fees are deductible business expenses. Review your transaction history to see the exact amounts you paid throughout the year.

How to track your tax deductions

Good records are key to claiming every eligible deduction. Use a simple system to:

• Save receipts and invoices
• Record dates and amounts for expenses
• Document the portion of your home used for guests
• Track rental days to calculate the business use percentage

Apps like Everlance can help you categorize expenses quickly and keep business costs separate from personal spending.

How to claim your tax deductions

Many Airbnb hosts report income and expenses on Schedule C, though some may file on Schedule E depending on how the rental is operated.

You will:

• Report your gross rental income
• Subtract your eligible business expenses
• Calculate your net profit, which is subject to income tax and self-employment tax

Depreciation and home office deductions may have additional forms or requirements. Many hosts find it helpful to consult a tax professional to ensure accuracy.

Common mistakes made by hosts

Avoid these frequent errors when claiming deductions:

• Mixing personal and rental expenses without clear separation
• Failing to track AirBnB expenses throughout the year
• Forgetting to allocate shared expenses based on rental use
• Overlooking small but legitimate costs like supplies or platform fees
• Not keeping receipts or documentation

If you’re an Airbnb host, understanding and tracking these deductions can lead to meaningful tax savings. Stay organized, keep thorough records, and take advantage of the expenses you are entitled to deduct.