Deductible Expenses

Mike163
Level 1
Westerville, OH

Deductible Expenses

Hey Guys,

 

I'm considering a few additions to my space and want some feedback. *Note: I have a tax guy who's solid, so he's also a major resource. However, he doesn't use ABNB like we do.

 

Expenses I'm considering: A smart TV or tablet device. ...and because travelers are likely to have a tablet, I'm leaning towards smart TV. This would enable my guest to watch the show of their choosing, assuming they stream. If they do NOT stream, I could always let them use my account. 

 

So, this would be deductible right? 

 

Also, aside from the typical expenses (chocolates, towels, etc)... what are some things you've paid for and then written off???

 

With Appreciation,

Michael

16 Replies 16
Marit-Anne0
Level 10
Bergen, Norway

Normally it would be the same book-keeping rules as with furnished lettings.

David126
Level 10
Como, CO

Things for the room beds, linen, electronics etc should be deductable.

David
Karen77
Level 10
Montrose, CO

I know a host who wrote off a hot tub she brought in as an amenity.  

A TV needs to be amoritized over several years, check with your tax guy for how long in Ohio.  Same thing goes for the sheets, mattress, furniture, etc that you use exclusively for the business that will outlast a single year's use. 

You can write off the percentage of square feet of the total house used exclusively for Airbnb as it relates to all the household expenses.  So for instance, if you are renting a 12' x 12' bedroom and that comes out to to be 10% of your total household square footage, you can write off 10% of the electric, gas, property taxes, mortgage, cable, internet, etc.  If they have a private bath, you can add % of the water, but if the bath is shared, no go.   

If you provide breakfast, you can write off all costs for groceries as long as you keep receipts specifically for the guest consumption.  That means, if you share a box of cereal and the milk with your guest, you can't write the entire thing off.  Same thing goes with that pot of coffee.  Then it comes down to a calculation of expenses over how many days vs people sharing the space... you're tax guy, if he's great, should be able to help you here.  

Same thing goes for toilet paper, paper towels, cleaners.... if you keep separate supplies for the business and for personal, this is easy.  If you hire a cleaner to do the work, and you want to write off their services, you need to make sure to file a 1099 for them and the amount you paid them to do the cleaning.  They are responsible for filing the income taxes.  

Please note that I am NOT an accountant or tax expert, you should consult with one to make sure what I've said is legit - because I'm not always right.  I just REALLY like numbers and puzzles and tax law is just that in spades.  

 

dont forget to deduct a third of your utilites water gas cable garbage

@Roy-And-Patti0 - be careful, technically, it's not a 1/3 unless the square footage of the exclusive space being used by the business is 1/3 of the total house.  I've heard this shorthand before, and it's likely to keep you from being audited, but it's not exactly correct. 

Thanks for the link - very helpful!

Mike163
Level 1
Westerville, OH

Very good stuff and sounds like we're all on the same page. If there's anything "outside the box," I'd love that feedback too.

 

thank you all!

Ivan97
Level 2
Boston, MA

Hi Im host in boston,ma legally what expenses is deductibles from my income.,

@Ivan97

You would need to ask your accountant.

Hi Im host in boston,ma legally what expenses is deductibles from my income.,

thank you very muchs

Paul706
Level 1
Euclid, OH

I rent my entire home through Airbnb.  Meanwhile I will stay either at a local hotel, a friends house or a family members house.  

I am aware of being able to deduct the hotel room, normal and necessary items.  am i allowed to deduct MILAGE to and from these alternative places I stay. And how about milage to the stores for the guests items.

Hud62
Level 2
Laramie, WY

Hi Guys!

 

I bought some plants to make the place more inviting. Can I write off things related to these ? gardening supplies, pots, etc ?

 

Cheers