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Airbnb/VRBO/Short Term Rental Tax Preparation

Simplifying Taxes for Airbnb Hosts: Save More, Stress Less

Handling taxes for Airbnb income can be a complex and time-consuming process. Unlike traditional rental properties or other gig economy platforms, short-term rental income comes with specific requirements, including local lodging taxes, reporting rental income, and identifying tax deductions for Airbnb hosts.

At Bandicoot, we understand the unique challenges Airbnb hosts face when it comes to tax compliance and savings. We’ve dedicated ourselves to learning the ins and outs of short-term rental tax laws, allowing us to help Airbnb hosts reduce tax liability and uncover valuable deductions, like utility expenses, maintenance costs, and other eligible write-offs.

 

Our expert strategies have helped countless Airbnb property owners maximize their rental income by ensuring their taxes are optimized for their specific circumstances. Whether you’re hosting your primary residence, a vacation home, or multiple properties, we’re here to help you save time, reduce stress, and keep more of your hard-earned income.

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Get exclusive VIP consulting to address:

  • Comprehensive Tax Review
  • Accounting Setup and Evaluation
  • Liability Assessment
  • Tax Liability Planning and Optimization
  • Expense Allocation Strategies
  • Financial Forecasting and Projections
  • Income Tax Preparation and Filing Assistance
  • Tax Return Review and Support
  • Entity Selection and Setup Guidance
  • Scenario Planning for Tax and Financial Outcomes
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Frequently Asked Questions

Yes, Airbnb income is taxable and must be reported to the IRS. Depending on your state, you may also owe state and local taxes.

Airbnb provides a Form 1099-K if you earn more than $600 in gross income in a year. However, even if you don't receive a 1099-K, you are still required to report your income.

If you rent your property for fewer than 15 days in a year, and it’s your primary residence, you may not need to report the income under the “14-Day Rule”.

Common deductions include:

  • Cleaning fees
  • Utilities (electricity, water, internet)
  • Mortgage interest
  • Property taxes
  • Repairs and maintenance
  • Depreciation on the property and furniture

No, you must prorate expenses based on the percentage of your home used for hosting and the time it’s rented.

Major home improvements may qualify for depreciation over several years, but repairs directly related to hosting (e.g., fixing a broken appliance) are deductible in the year incurred.

If your Airbnb business is complex, involving multiple properties or significant deductions, consider hiring a CPA or tax advisor experienced in short-term rentals.

The IRS can impose penalties, interest, and back taxes if you fail to report your Airbnb income. It’s better to stay compliant from the start.

Take the Stress Out of Bookkeeping – Get Started Today!

Managing your Airbnb finances doesn’t have to be overwhelming. Bandicoot’s specialized accounting services ensure accuracy, compliance, and actionable insights, allowing you to focus on growing your rental business and delivering exceptional guest experiences.

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