1. Rent - Rent can be one of your biggest personal expenses on a monthly basis. If you’re renting your home and hosting it for Airbnb, it can be one of the best tax deductions available to you. To figure out how much rent you can deduct for tax purposes, the following equation can help you figure it out:
[Monthly Rent Expense] x [Days rented out / Days in Month] = Amount that can deduct for tax purposes
2. Cleaning - This expense can range from hiring a professional cleaning service to buying toilet bowl cleaner, windex, and a vacuum. There are many day-to-day cleaning expenses that you incur to keep your place clean for guests which are tax deductible!
3. Furniture - This is a great tax deduction, especially if you purchased furniture for purposes of Airbnb. Such Expenses can include: Beds, Desks, Drawers, and other household items necessary for your Airbnb rental. There may be special rules that apply to furniture so please be sure to speak with a competent tax professional regarding this.
4. Electricity/Cable TV/Water and Sewer - This is often the most overlooked tax deduction but it can save you a pretty penny when it comes around to tax season time. To figure out the amount you can deduct for these expenses, use the following formula:
[Amount spent on electricity, cable, etc.] x [Days rented out / Days in month] = Amount that can be deductible for tax purposes
5. Food - This is a great tax deduction if you provide food for your guests and its an ordinary and necessary part of running your Airbnb listing. Make sure to keep track of every expense that’s related to business versus personal.
Overall, ,there are some great tax deductions that are available to you. Its important to provide adequate records of your expenses if they ever get called into questioning.