How We Manage our Airbnb Hosting Finances

airbnb expense categories

Without a W-9, Airbnb may withhold 24-28% of your income for taxes and submit them to the IRS. Check your Airbnb Earnings Summary to see if taxes are being withheld. As an investor, your decisions will depend completely on your ability to identify and estimate expenses before you buy. Because of this many hotels are trying to hurt Airbnb hosts by using local law.

Stick to the end for tips on how to save on your monthly operating costs, Airbnb accounting suggestions, and a FREE downloadable Airbnb expenses spreadsheet to help you track your expenses and income. When it comes to renting out an Airbnb, it’s likely you won’t have to worry too much about the IRS standards because you own the property. Everything from hiring graphic designers to create ads to paying social media advertising fees is all eligible for tax deductions are tax deductible, and should be tracked throughout the course of the year. So how much does a service on Airbnb cost to owner of a listed rental property? For a split fee, most host hosts pay a flat service fee of 3% of the booking subtotal, but Airbnb Luxe and Airbnb Plus hosts, as well as hosts with Super Strict cancellation policies pay more.

The Freelancer’s Guide to Tax-Deductible Subscriptions

Below are some of the most recommended apps and tools to help you keep track of your STR investment. If you are one of those hosts who want to go the extra mile to give your guests the best service, then you might consider subscribing to entertainment channels like Disney +, Netflix, HBO airbnb accounting Go, and more. If this is the case, then you might want to consider adding these subscriptions to your Airbnb expense tracker. If you want to satisfy your guests, getting an internet subscription is a must. The good thing is that it doesn’t cost as much as your other monthly expenses.

In most cases this will allow you to write off up to $25,000 per property, and can include many of the tax deductions listed above. You might also be surprised to learn that you can deduct property insurance for your Airbnb rental, since you typically can’t write off homeowner’s insurance on your personal tax return. That’s because, in this case, your property is not your personal residence, but an Airbnb business that you’re renting out, so the insurance is considered a business expense.