The STR Host's Guide to Tax Deductions You Might Be Missing
Legal & Compliance

The STR Host's Guide to Tax Deductions You Might Be Missing

For My Guest TeamFebruary 15, 202611 min read

Tax season doesn't have to be stressful for STR hosts. In fact, with the right knowledge, it can be one of the most rewarding times of year. Short-term rental properties come with a wealth of deductions that many hosts overlook.

Disclaimer: This article is for educational purposes only. Always consult with a qualified tax professional for advice specific to your situation.

The Big Deductions

1. Depreciation

Your property (not the land) can be depreciated over 27.5 years for residential rental property. This is often the single largest deduction available to STR hosts.

Example: If your property (excluding land) is worth $300,000:

  • Annual depreciation: $300,000 / 27.5 = $10,909/year

That's nearly $11,000 in deductions without spending a dime out of pocket.

2. Mortgage Interest

The interest portion of your mortgage payment is fully deductible against rental income. For most hosts, this is thousands of dollars per year.

3. Property Taxes

State and local property taxes on your rental property are deductible as a business expense.

4. Insurance Premiums

Your property insurance, liability insurance, and any umbrella policies related to your rental are deductible.

Operating Expense Deductions

Cleaning & Maintenance

  • Professional cleaning between guests
  • Landscaping and lawn care
  • Pool/hot tub maintenance
  • Pest control
  • General repairs and maintenance

Supplies & Amenities

  • Linens, towels, and bedding
  • Toiletries and welcome basket items
  • Kitchen supplies and cookware
  • Cleaning supplies
  • Light bulbs, batteries, and small items

Technology & Software

  • Smart locks and security cameras
  • Property management software
  • Dynamic pricing tools
  • WiFi and streaming service subscriptions
  • Channel manager subscriptions

Professional Services

  • Accountant/CPA fees
  • Legal fees
  • Property management fees
  • Photography for listings

Commonly Overlooked Deductions

Travel Expenses

If you travel to your rental property for management purposes, those trips are deductible:

  • Mileage (67 cents/mile in 2026)
  • Airfare for out-of-town properties
  • Hotel stays during property visits
  • Meals during business travel (50%)

Home Office

If you manage your STR business from home, you may qualify for the home office deduction.

Education & Training

  • STR courses and workshops (like ours!)
  • Books about hosting and real estate
  • Conference attendance
  • Industry membership fees

Marketing

  • Professional photography
  • Website hosting
  • Business cards
  • Social media advertising

Record-Keeping Best Practices

  1. Separate bank account for all rental income and expenses
  2. Save every receipt — use an app like Expensify or Receipt Bank
  3. Track mileage with an app from day one
  4. Document property improvements with photos and receipts
  5. Keep a log of days the property is rented vs. personal use

When to Consult a Professional

While this guide covers the basics, STR taxation can be complex — especially around:

  • Material participation rules
  • Short-term vs. long-term rental classification
  • Cost segregation studies
  • 1031 exchanges
  • State and local tax obligations

A CPA who specializes in real estate or short-term rentals is worth their weight in gold. The money you spend on professional tax advice almost always comes back in savings.

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