Short-Term Rental Tax Deductions: The Complete Checklist

Short-term rental income is taxable — but the expenses of earning it are broadly deductible, and hosts leave real money on the table every year simply by not knowing what counts. This checklist covers the categories hosts in the US and Canada most commonly deduct.

The obvious disclaimer: this is general information, not tax advice. Rules differ by country, state/province, and your personal situation (especially around personal-use days and depreciation). Use this list to have a better conversation with your accountant, not to replace one.

Operating costs — the everyday deductions

• Platform fees — Airbnb/VRBO host fees and commissions, payment processing fees
• Cleaning and turnover — cleaner payments, laundry services, cleaning supplies
• Guest consumables — toiletries, coffee and tea, paper products, welcome baskets
• Linens and towels — purchases and replacements
• Utilities — electricity, gas, water, trash, internet, cable/streaming services offered to guests
• Repairs and maintenance — plumbing fixes, appliance repairs, paint touch-ups, pest control, snow removal, lawn care
• Supplies and small equipment — tools, smoke detectors, smart locks, first-aid kits

Property-level costs

• Mortgage interest — typically one of the largest deductions
• Property taxes
• Insurance — homeowner's, landlord, and STR-specific policies
• HOA or condo fees
• Depreciation — the building itself (not the land) and major furnishings depreciate over time; larger purchases like appliances and furniture may need to be capitalized rather than expensed in one year. This is the area where an accountant most earns their fee.

Professional and administrative

• Accountant and bookkeeping fees
• Legal fees related to the rental
• Property management software — including tools like StayVue that you use to track bookings and expenses
• Licenses and permits — STR permits, business licenses, lodging tax registrations
• Advertising — professional photography, listing fees, a direct-booking website

The ones hosts forget

• Mileage — every drive to the property for turnovers, repairs, guest issues, and supply runs. Log the date, purpose, and distance; standard mileage rates make this a surprisingly large deduction for hosts who don't live next door.
• Home office — if you genuinely manage the rental business from a dedicated space at home, a portion of home costs may qualify.
• Phone and internet (business portion) — the percentage used for hosting.
• Education — hosting courses, industry books, conference fees.
• Bank and interest charges — fees on a dedicated rental account, interest on money borrowed for the rental.
• Guest refunds and damages — refunds you issued reduce income; unreimbursed damage costs are generally deductible.

What generally does not count

• Expenses for personal-use periods — if you use the property yourself, costs usually must be prorated between rental and personal use
• Improvements vs. repairs — a renovation that adds value (new deck, kitchen remodel) is typically capitalized and depreciated, not deducted in one year
• The principal portion of mortgage payments (only interest is deductible)
• Your own labor — the hours you spent painting are not a deductible expense, however unjust that feels

Making the checklist useless (in a good way)

A checklist like this is a year-end salvage tool. The better system is recording every expense when it happens, with a category, a property, and a receipt photo attached — then tax season is a one-click report instead of an archaeology project. Our expense tracking guide lays out a ten-minute-a-week system, and StayVue automates the categories, recurring expenses, partial deductions, and the tax export itself — one-time purchase, no subscription, and your data stays on your own device.