Taxes for STR hosts: what can I deduct?

Category: Legal & Regulations

By: James Wu

Posted: 2025-12-31T14:16:50.299Z

First tax season as an STR host. I made about $35K in gross bookings. My CPA is good but doesn't specialize in STR, so I want to make sure I'm not missing any deductions. What expenses are deductible for STR hosts? Especially the non-obvious ones.

Reply by Brittany Simmons:

Congrats on your first year! Here's a comprehensive (but not exhaustive) list of STR tax deductions. **I'm not a CPA — verify everything with yours.** **Direct Expenses (100% deductible):** - Cleaning fees paid - Consumables and supplies - Platform fees (Airbnb host service fee, VRBO commission) - Guest amenities (coffee, toiletries, welcome baskets) - Professional photography - Smart locks, security cameras, Minut sensors - Dynamic pricing tools (PriceLabs https://pricelabs.co) - PMS/messaging tools (Hospitable https://hospitable.com, Guesty https://guesty.com) - Turno or turnover management fees - Laundry service costs - STR insurance premiums (Safely https://safely.com, Steadily https://steadily.com) - Key/lock replacement - Channel manager fees - Guest screening tools (Alertify https://alertify.io) **Property Expenses (% based on rental use):** - Mortgage interest (portion allocable to rental use) - Property taxes (same) - Utilities (electric, gas, water, internet, trash) - HOA fees - Home insurance - Repairs and maintenance - Lawn care / snow removal - Pest control **Depreciation:** - Building (27.5 years straight-line for residential) - Furniture and appliances (5-7 years, or Section 179 immediate deduction) - Improvements (varies by type) **Often Missed Deductions:** - **Mileage** to/from the property for maintenance, restocking, inspections - **Home office** if you manage your STR from a dedicated space at home - **Phone and internet** (percentage used for STR management) - **Education** — courses, books, conferences about hosting - **Travel** to inspect potential properties or attend host meetups - **Legal and accounting fees** - **Start-up costs** (if you incurred expenses before your first booking) The biggest mistake new hosts make: not tracking expenses from Day 1. Use a separate bank account and credit card for STR expenses. It makes tax time 10x easier.

Reply by Camille Dubois:

The 14-day rule is important: If you rent your property for **14 days or fewer** per year, the entire rental income is TAX-FREE. You don't even have to report it. This is the "Augusta Rule" (named after the Masters golf tournament in Augusta, GA where homeowners rent their homes during tournament week). If you rent for 15+ days, it's all taxable but you also get to take all the deductions mentioned above.

Reply by Tony Russo:

One more often-missed deduction: **cost segregation study.** If you own the property (not renting), a cost segregation study can reclassify parts of the building from 27.5-year to 5, 7, or 15-year depreciation. This front-loads your depreciation deductions. For a $400K property, a cost segregation study might yield $40-80K in first-year bonus depreciation. The study costs $3-5K but the tax savings can be enormous. Talk to a CPA who knows real estate.