Do I report Airbnb income on Schedule C or Schedule E?

Most hosts use Schedule E (Supplemental Income and Loss). Schedule C is used only if you provide substantial services similar to a hotel (daily cleaning, concierge, meals). The distinction matters because Schedule C income is also subject to 15.3% self-employment tax.

What's the 14-day rule?

If you rent your property for 14 days or fewer per year, the rental income is completely tax-free. However, you also cannot deduct any rental expenses. This is a simple planning opportunity for casual hosts.

Can I deduct furnishings I bought for the rental?

Yes. Furniture, appliances, TVs, bedding, and kitchenware purchased for the rental property are deductible — either immediately under Section 179/bonus depreciation or over their useful life.

Do I owe self-employment tax on Airbnb income?

Generally no — passive rental income reported on Schedule E is not subject to self-employment tax. Only if the IRS determines you're running a hotel-like business (Schedule C) would SE tax apply.

Schedule E · Self-Employed

Tax Write-Offs for Airbnb Hosts & Short-Term Rental Owners

Airbnb hosts and short-term rental owners report income on Schedule E (not Schedule C) unless they provide substantial hotel-like services. Either way, your mortgage interest, property taxes, repairs, cleaning costs, and depreciation all reduce your taxable rental income — most hosts significantly underclaim these deductions.

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Top 6 Tax Write-Offs for Airbnb Hosts & Short-Term Rental Hosts

Depreciation (Biggest Deduction)

100% deductible

Residential rental property is depreciated over 27.5 years. On a $300,000 property, that's ~$10,900/year in non-cash deductions that reduce your taxable income — even as the property's market value rises.

Schedule E, Line 18

Airbnb Service Fees & OTA Commissions

100% deductible

The host service fee Airbnb charges (typically 3%) on every booking is a deductible business expense. VRBO, Booking.com, and other OTA commissions are also fully deductible.

Schedule E, Line 10

Cleaning & Turnover Costs

100% deductible

Cleaning services paid between guests, laundry, cleaning supplies, and consumables (toiletries, coffee, paper goods) replaced for each guest stay are all deductible expenses.

Schedule E, Line 10

Repairs & Maintenance

100% deductible

Repairs that keep the property in its current condition (fixing a broken appliance, patching a hole) are deductible in the year paid. Improvements that add value must be capitalized and depreciated.

Schedule E, Line 14

Mortgage Interest

100% deductible

The rental portion of your mortgage interest is deductible. If you rent the property all year, 100% is deductible. If you also use it personally, prorate based on rental days vs. total days of use.

Schedule E, Line 12

Property Management Software

100% deductible

PriceLabs, Wheelhouse, Hospitable, Lodgify, or any property management platform you use to automate pricing, messaging, and bookings.

Schedule E, Line 19

Common Mistakes to Avoid

Not claiming depreciation — it's the largest non-cash deduction and many hosts skip it.
Missing the 14-day rule — if you rent for 14 days or fewer per year, income is tax-free but no expenses are deductible.
Failing to prorate expenses when you also personally use the property.
Deducting improvements as repairs — capital improvements must be depreciated, not immediately expensed.

Recordkeeping Tips

Track every rental night vs. personal use night throughout the year to calculate your prorated deduction percentage.
Save all repair and maintenance receipts, noting the date and what was fixed.
Download your annual income summary from Airbnb showing gross earnings and platform fees.
Consult a CPA for the depreciation calculation — it's complex but worth thousands of dollars annually.

Frequently Asked Questions

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This content is for informational purposes only and does not constitute tax advice. Consult a qualified CPA or tax professional for guidance specific to your situation.