It’s a simple but important fact: If you’re making money from your vacation rental business, you need to pay taxes on your income. Unfortunately, taxes can account for a significant chunk of your profits, especially if you’re renting your space often or managing more than one property. Luckily, you can deduct some of your expenses to help save you money off of your taxes. Deducting expenses is a significant advantage of being a business owner, but you need to make sure that you’re keeping good records and being honest, so you don’t run the risk of being audited. If you have a specific question, it’s best to ask a tax professional, but below is a list of business expenses that you may be able to deduct from your annual taxes. Use this list to help you organize your expenses and hopefully keep you smiling through tax time. NOTE: We are not tax specialists or accountants and cannot offer such advice. For all tax and accounting questions make sure to contact the professionals.
Airbnb tax deductions:
General rule: if you spend money directly on your Airbnb property, you can count it as a tax deduction. Specifically, you can usually write off the following purchases to help decrease the amount of money you owe each year:
Repairs and maintenance (paint, a new faucet, an upgraded couch, etc.)
Cleaning services and or cleaning supplies
Travel fees like gas and tolls (if you need to drive to your property to drop off keys or perform a repair)
Insurance (don’t skip on insurance, it pays to have peace of mind.)
Utilities (gas, electric, water, etc.)
Office expenses (rent, utilities, computer purchases, printer paper)
Marketing and advertising (either print or online)
Towels, sheets, coffee and welcome basket supplies
Service fees (like Airbnb fees)
Accounting fees (hiring a good accountant is necessary and worth it!)
Pro tip: Airbnb tax Deductions don’t matter if you don’t keep the receipts! Be diligent in keeping and filing your receipts now, so you don’t have to stress during tax time. Also, organizing your receipts is a good way of keeping your accountant on your good side. Read more tax tips here.
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