Verus Tax Service › Landlords & Airbnb
Rental property taxes, including the short-term kind
I prepare returns for landlords and short-term rental hosts, and I operate rental property myself. The rules for a long-term tenant and a three-night Airbnb guest are genuinely different, and the difference is expensive when it is missed.
What I watch for
Depreciation
The largest deduction most landlords have, and the one most often mishandled. It is not optional — the tax rules assume you took it whether you did or not, and it is recaptured when you sell. Getting the basis and the schedule right at the start matters for decades.
Repairs versus improvements
A repair is deducted now. An improvement is capitalized and recovered over years. The line between them is one of the most frequently examined items on a rental return, and there are safe harbors that many landlords qualify for but never claim.
Short-term rental treatment
Average stay length and the services you provide can change which schedule your rental belongs on, and whether the income is subject to self-employment tax. This surprises hosts every year.
Platform payouts and fees
What Airbnb deposits is not what you earned. Gross booking revenue, host fees, cleaning fees and occupancy taxes must be separated to report correctly. Booking net deposits as income understates both revenue and expenses.
Local occupancy tax
Short-term rentals often carry local tax obligations independent of income tax. These are enforced locally and easy to overlook until a notice arrives.
If you own more than one unit, bring the closing statements. Correct basis on each property is where the long-term money is.
“Hugo & his team are very professional, caring & very detailed in their work.”Google review
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