If you’ve ever flinched at your year-end tax bill while running a short-term rental business, here’s the good news: You might be missing out on deductions that could bring that number way down.
From furniture and cleaning services to travel and tools, Airbnb tax deductions can significantly reduce your taxable income – if you know where to look.
Let’s break it down.
First things first: Is short-term rental income taxable?
Yes, the IRS considers Airbnb income to be taxable business income, whether you’re renting a spare room or managing multiple properties. That means you’re eligible (and expected) to report income and expenses.
The good news? You can start writing off expenses from day one – even before your first guest checks in. If the expense was incurred for the purpose of earning rental income, it likely qualifies.
What expenses can you write off for Airbnb?
From startup costs to monthly bills, many vacation rental expenses qualify as deductions. These can be broken into two buckets:
- Startup costs and one-time investments
- Ongoing operational expenses
Here’s a closer look at both:
Startup costs and one-time investments
Startup expenses are the costs you incur before your listing goes live. These are often one-time investments made to transform a property into a guest-ready place to stay.
While they can be significant, startup costs are also some of the most straightforward to deduct – especially if you keep good records.
Deductible startup costs include:
Property setup and launch expenses
Cleaning after construction, professional photos, listing setup, staging – it all adds up. Even your Airbnb startup cost may be tax deductible if directly related to setting up the business.
You can also deduct fees paid to consultants, legal advisors, or real estate agents who helped get your unit ready for guests.
Furniture and furnishings
Yes, you can claim an Airbnb furniture tax deduction for beds, sofas, headboards, lamps, and more.
In most cases, you’ll deduct the value over several years (depreciation), unless you qualify for a Section 179 deduction, which lets you deduct the full cost up front. High-traffic STRs often require replacements every few years, so track these updates carefully.
Pro tip: By joining Minoan, not only do you save big on furnishing and restocking your rental, but all of your purchases are organized into a centralized platform to make tax time easier! Join Minoan now.
Appliances and electronics
Coffee makers, TVs, routers, fridges, AC units – if it helps your guests or supports the business, it can probably go on your Airbnb expenses list. Items like irons, hairdryers, and sound machines also qualify.
Operating expenses
These are the everyday, recurring costs of running a short-term rental and they add up fast. Unlike big one-time purchases, operational expenses are usually fully deductible in the year they’re incurred.
Keeping detailed records of these recurring costs can make a big impact on your taxable income and long-term profitability.
Cleaning fees and supplies
Whether you hire a cleaning crew or do it yourself, the answer is yes – Airbnb cleaning fees are tax deductible.
Also deductible? Cleaning sprays, detergent, toilet bowl cleaner, and other supplies you stock between stays. Be sure to keep a log of what gets replenished per turnover.
Maintenance and repairs
Broken faucet? HVAC emergency? Repainting a scuffed wall?
Deduct it.
Just remember, upgrades count as improvements and may need to be depreciated. Emergency services, like plumbing or electrical issues, can often be deducted fully in the year they’re paid.
Utilities
Electricity, water, internet, trash collection – if your guests use it, you can likely deduct it proportionally. If you use the property personally, you'll need to calculate the rental-use percentage.
Property management and co-hosting fees
If you work with a property manager or pay a co-host, you can deduct the cost of their services.
Software and digital tools
Dynamic pricing tools, smart lock apps, channel managers, and vacation rental management software? All deductible. Don’t forget premium versions of calendar tools or automated messaging systems.
Marketing costs
Ads for your Airbnb, logo design, listing photography, email marketing tools are all ordinary and necessary business expenses. You can also deduct the cost of running seasonal promotions or boosting social media posts.
Insurance, taxes, and professional services
Some of the less glamorous (but essential) costs of operating an STR fall into this category.
From protecting your property to filing taxes correctly, these expenses keep your operation compliant, insured, and stress-free. Thankfully, many of these professional service costs are tax-deductible.
Property insurance and STR coverage
While a typical homeowners policy usually doesn’t qualify, short-term rental insurance costs are deductible. If you purchase liability coverage for guest injuries or damage protection, those premiums are also eligible.
Business licenses and permits
If your city or county requires a permit to operate, you can deduct those fees. This includes STR registration costs and annual license renewal fees.
Property taxes
You may be able to deduct a portion of your property tax as an Airbnb rental tax deduction, depending on how much you use the property personally.
Check with your tax professional to determine what percentage is eligible.
Legal, accounting, and tax prep fees
CPAs, bookkeeping services, and business consultations are all deductible. If you hire a tax strategist or attorney to help with zoning issues or dispute resolution, those costs are fair game, too.
Travel, vehicles, and workspaces
Managing a short-term rental isn’t always a sit-at-your-desk job. Whether you’re checking in on your unit, coordinating with vendors, or handling restocks, your business may take you on the road.
The good news? Travel, vehicle use, and even your home office could all qualify for deductions – as long as you meet IRS requirements.
Travel for business purposes
Visiting your rental to inspect damage, meet contractors, or restock? Deduct expenses for mileage, airfare, lodging, and meals if they’re business-related. Document the reason for each trip and keep all related receipts.
Car-related deductions
Mileage, tolls, and parking can be deducted if the car is used for your STR. Apps like MileIQ or QuickBooks can help log your driving activity.
Home office deductions
If you manage your rental remotely from a dedicated home office, a portion of your rent, internet, and utilities might be deductible. The space must be used regularly and exclusively for business. A clean photo of your workspace can serve as useful documentation.
Bonus: Replenishables and guest amenities you might be missing
It’s the little things – like the welcome basket with snacks or the good-smelling shampoo – that guests remember. These everyday consumables may not seem like much individually, but they’re recurring costs that add up fast. Luckily, most are considered valid business expenses and can be deducted in full.
Toiletries and consumables
Toilet paper, shampoo, tissues, dish soap, and coffee pods seem like small expenses, but they’re part of your guest experience and can be deducted. Replenishables used for turnovers should be logged clearly.
Linens and bedding replacements
Towels, sheets, and comforters wear out fast in STRs. Replace them as needed and deduct them. Use a consistent replacement schedule (e.g. every 12 months) and track receipts for tax season.
Kitchen basics
Salt, pepper, oil, sponges, hand soap – deduct the basics your guests expect. Buying in bulk and allocating usage per turnover can make record keeping easier.
Pro tip: Minoan hosts save on all of the above replenishable items and goods. Join at no cost and shop your Airbnb essentials at insider prices.
How to keep records that make tax time easier
Strong tax write-offs start with strong recordkeeping. The IRS doesn’t just want to know that you spent money on your Airbnb – they want to know when, why, and how much.
Organizing your records not only makes tax season less stressful, but can also protect you in the event of an audit.
Start with an Airbnb expenses spreadsheet or bookkeeping software to log every transaction.
Group expenses into clear categories like furnishings, utilities, guest supplies, and professional services. Include the date, vendor, purpose, and amount.
Take photos or scans of every receipt and back them up in cloud folders.
Think Google Drive, Dropbox, or Notion. You can even tag them by property if you own multiple rentals.
Use tools like QuickBooks, Stessa, Expensify, and Wave to automate much of this process.
They link to your bank account, auto-tag purchases, and generate reports you (or your accountant) can use to prep your return. And if you’re on the go often, mobile apps can help track mileage and store receipts on the fly.
There’s no perfect Airbnb tax calculator, but a good paper trail is the next best thing.
Best tax structure for Airbnb
Once you start generating meaningful income from your short-term rental, choosing the right business structure becomes more than just a paperwork decision. It shapes how you’re taxed, how easily you can track and report expenses, and how well your personal assets are protected from business liabilities.
A lot of new hosts default to operating as sole proprietors, but that doesn’t provide legal separation between your business and personal finances.
Forming an LLC (Limited Liability Company) is a common first step for added protection – and it’s relatively simple to set up. If your earnings grow, you might also consider having your LLC taxed as an S-corp, which could reduce your self-employment tax burden.
More advanced structures like C-corporations are generally best suited for hosts with larger portfolios or long-term expansion plans.
The bottom line? The best tax structure for Airbnb isn’t one-size-fits-all.
Your ideal setup depends on:
- Your income
- The number of properties you manage
- How hands-on you are with daily operations
A tax professional familiar with the short-term rental space can help you make the call with confidence. The smartest move? Talk to a CPA or tax advisor who understands short-term rentals – they can help tailor the right setup for your specific situation.
Final take: Treat tax season like an opportunity
Tax season might feel like a chore, but it’s also a great checkpoint for your business. If you’ve tracked your expenses, saved your receipts, and stayed organized, this is your moment to cash in on the behind-the-scenes work you’ve already done.
Tax season is also a great time to take a fresh look at where you’re spending – and saving. With insider pricing on 150+ premium brands, Minoan makes it easy to outfit your rental with furnishings and essentials that are not only guest-loved, but often tax-deductible.
FAQs
Can you write off furniture for Airbnb?
Yes, furniture purchases used for your short-term rental can be deducted as a business expense. Depending on the cost and how the IRS classifies the item, you may deduct the full amount in the first year (Section 179) or depreciate it over several years.
Can you deduct Airbnb cleaning fees?
Absolutely. If you hire cleaners between guests or purchase cleaning supplies to do it yourself, those costs are considered operational expenses. Cleaning is a key part of running a short-term rental and is fully deductible.
What is the tax loophole for Airbnb?
The most well-known Airbnb tax loophole is the "14-day rule." If you rent out your personal residence for 14 days or fewer per year, you don’t have to report the income or pay taxes on it. However, if you rent for more than 14 days, different IRS rules apply and deductions become essential.
How to avoid taxes on Airbnb income?
You can't legally avoid taxes, but you can reduce your taxable income by taking full advantage of eligible deductions. Track your expenses, choose the right tax structure, and work with a professional to make sure you're optimizing your strategy while staying compliant.