Short Term Rental Tax Benefit

[Komlan1]

Hi Airbnb Host Community,

I am curious about the short-term rental tax guidance. My accountant is recommending strict guidelines and tracking activities before we consider submitting our qualification to the IRS. I'd love to learn about any experience with this benefit and how you managed the additional tracking of hours spent on the property to qualify for the deduction. 

Here are the recommendation details:

Test 1:  you personally spent more that 500 hours during 2024 and 2025 working the property

Test 2:  You substantially do all the work, (cleaning, maintenance, managing)

Test 3:  You participate more than 100 hours and that your participation is more than any other individual. 

In addition, do you have contemporaneous logs of the time you spent working on the property?  Without this, the IRS would disallow the short-term rental application.  Are you looking to have a cost segregation report performed?  This is done by a third party which generates a report to increase the depreciation allowed by classifying assets differently.

Thank you, Komlan

[Paula]

Hello @Komlan1, thank you so much for sharing your question with the Host Community.

I would be happy to tag some hosts in your area to gather their opinions. Could you please confirm whether this applies to hosts in Pennsylvania?

Regards,