Industry Guide
Tax guidance for short-term rental hosts.
Airbnb, VRBO, and boutique hosts — Schedule E vs Schedule C, material participation, and depreciation basics.
Who this is for
Built for short-term rentals
For hosts operating one or more short-term rental properties, including 'STR loophole' considerations.
Common income sources
- Nightly rental income
- Cleaning fees and add-ons
- Damage deposits (when kept)
Commonly considered expense categories
- Mortgage interest and property tax
- Cleaning and turnover costs
- Supplies (linens, toiletries)
- Platform fees
- Utilities and internet
- Depreciation of the property
May be deductible if eligible and properly documented. Rules vary — verify with a professional.
Recordkeeping
Recordkeeping checklist
- Platform statements from Airbnb / VRBO
- Occupancy records (average stay length)
- Time-log of hours you spent hosting
- Improvement vs repair receipts
Watch outs
Common mistakes to avoid
- Assuming STR losses can always offset W-2 income
- Treating capital improvements as repairs
- Missing local occupancy/hotel taxes
- Skipping depreciation to 'save it for later' (it's still recaptured)
FAQ
Frequently asked questions
Industry guides are general educational information for short-term rentals and do not constitute tax advice. Rules change often and personal circumstances vary — please consult a qualified tax professional.
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