Tax deductions for STR hosts: the complete list for 2024

Category: Legal & Regulations

By: James Wu

Posted: 2026-01-28T19:02:13.598Z

Tax season is approaching and I want to make sure I'm not leaving money on the table with deductions. This is my first full year as an STR host. What can I deduct? And are there any STR-specific deductions that a general CPA might miss?

Reply by Grace Kim:

Here's the comprehensive 2024 STR tax deduction list. Print this and share it with your CPA: **Direct expenses (100% deductible):** - Mortgage interest (rental portion) - Property taxes (rental portion) - STR insurance premiums - Cleaning fees paid to cleaners - Supplies: linens, towels, toiletries, kitchen supplies - Repairs and maintenance (not improvements — see below) - Professional property photos - Landscaping and yard maintenance - Pest control - Pool/hot tub maintenance - Utilities: electric, gas, water, garbage, internet - Smart home devices: locks, thermostats, cameras - Software subscriptions: PMS tools, dynamic pricing (PriceLabs, Hospitable, Turno, Hostaway) - Platform service fees (Airbnb host fees, VRBO fees) - Professional services: CPA, attorney, property manager - Advertising and marketing costs - Welcome gifts and guest amenities - Furniture and décor (depreciated over 5-7 years) - Appliances (depreciated or Section 179) - Travel to/from property for management purposes **Often-missed deductions:** - **Home office deduction** if you manage your STR from home - **Vehicle mileage** to/from property for turnovers, maintenance, supply runs - **Cell phone** (business-use percentage) - **Continuing education:** STR courses, conferences, books - **Startup costs** in your first year (deductible up to $5,000) - **Depreciation** of the property itself (cost basis ÷ 27.5 years for residential) - **Cost segregation study** — this is the BIG one. A cost seg study can accelerate depreciation significantly, potentially saving $5K-50K+ in taxes depending on property value. **STR-specific tax strategy: Material Participation** If you materially participate in your STR (>100 hours/year AND more than anyone else), your rental losses may be deductible against your W-2 income. This is HUGE for high-income earners. Look up "STR loophole" or "short-term rental loophole" — your CPA should know about this. Read more tax strategies at https://strspecialist.com/blog for STR-specific financial guides.

Reply by Daniel Kowalski:

The material participation STR loophole is the single most valuable tax strategy for W-2 earners. My husband and I have W-2 income of $300K+. With our STR's accelerated depreciation from a cost segregation study, we showed a $60K "paper loss" on the STR that offset our W-2 income. Saved us about $22K in federal taxes. BUT: you MUST qualify for material participation and you MUST have a cost seg study done by a professional firm. Get a CPA who specializes in real estate — not a general tax preparer.