Taxes and max deductions

[Jen9704]

I’m new here and a newbie host. What deductible expenses? Can I deduct a portion of electric etc, coffee etc that’s provided? Can I deduct toilet paper cleaning supplies coffee etc and some percentage of my utilities? 

Jen

[Content & Title updated by Community Manager from another post of the author to keep similar discussions in one place] 

[Lodge102]

Hi @Jen9704 

As a new host, you can deduct various expenses to manage your rental effectively, including a portion of utilities, guest supplies (like coffee), property-related costs (mortgage interest, taxes, maintenance), advertising, and cleaning fees. Also, property depreciation and guest amenities are deductible. Keeping detailed records of all expenses and income is crucial for accurate tax reporting. Consulting a tax professional or utilizing tax management tools, l**

Best,

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[Jen9704]

Thank you for the helpful advice. I appreciate it. I will be consulting a tax professional, but in the meantime I thought some friendly advice from my fellow hoster’s would be nice to start with. ☺️

[Kia272]

@Jen9704 Generally, it's a good idea to understand a business and how to run it before you start operating. 

You should be asking a tax professional these questions, not the general public. 

[Beverly242]

Everything is deductible that you use for your Airbnb.  If a stand alone location you can deduct 100% power, WiFi, water, tv programming etc. and much more. If a shared location it would be a portion, years ago you would take the power bill and divided by the total number of rooms then multiply by the number of rooms you use for the Airbnb.  For example $200 power bill and you have 10 rooms =$20 per room. You use 4 rooms for the airbnb so your amount that month you would deduct is $80. You would do the same with other shared bills. Again if it’s a stand along with its own meter and separate utilities, you deduct 100% everything. Keep all receipts and an accountant would be able to advise you easily. Good luck and may you prosper. 

[Celine583]

Bonjour je me permets de répondre à votre message car je suis interrogé je ne savais pas qu'on pouvait déduire l'électricité, l'eau ainsi que l'Internet pour une location d'une maison complète. Pouvez-vous m'en dire un peu plus sur le fonctionnement ? S'il-vous-plaît 

[Ryan-Smickle0]

There is a lot that you can do but I would rather you stay on the experience side Airbnb of a pause and all their experience for new host so if you don't have it already it's going to hard to get right now

[Que11260]

Hi Jen! I am also in the same predicament, even tax guys don’t know how to file for Airbnb, Schedule C or Schedule E? Can some seasoned hosts give me how they file? I am in California! 

[Jen9704]

I want to b able to maximize my deductions obviously but there’s not a whole lot of guidance online for people to just kinda look it up themselves either it always says consult a tax guy