Tax Deductions Every Hocking Hills Host Should Know

The Golden Rule of STR Tax Deductions

If an expense is “ordinary and necessary” for operating your short-term rental business, it’s generally deductible. The key word is “business.” Treat your rental as a business with proper records, and the tax code works in your favor. Treat it casually, and you’ll overpay.

Deductible Expenses

Platform and Service Fees

• Airbnb host service fees (3% or 15.5%)
• VRBO host fees and payment processing fees
• Payment processing fees (Stripe, PayPal) for direct bookings
• Channel manager fees (OwnerRez, Hospitable, etc.)
• Dynamic pricing tool subscriptions (PriceLabs, Beyond, Wheelhouse)

Property Operations

• Cleaning costs (professional cleaning service or supplies)
• Laundry (commercial laundry service or in-unit supplies and utilities)
• Guest supplies: toiletries, coffee, toilet paper, paper towels, trash bags
• Hot tub chemicals, filters, and maintenance
• Firewood and fire-starting supplies
• Propane (portion used for rental operations)
• Utilities (electricity, water, gas, internet, trash) — proportional to rental use
• Pest control
• Snow removal and lawn care
• Septic pumping and maintenance

Property Improvements and Maintenance

• Repairs (plumbing, electrical, appliance repair)
• Maintenance (deck staining, HVAC servicing, chimney cleaning)
• Furniture and equipment (depreciated over useful life — typically 5–7 years)
• Hot tub purchase (depreciated)
• Smart home devices (smart locks, thermostats, noise monitors)
• Mattresses and linens (replaced regularly — can deduct or depreciate)

Professional Services

• Professional photography ($150–$400)
• Accountant/CPA fees for tax preparation
• Legal fees (LLC formation, contracts, consulting)
• Property management fees (if using a management company or co-host)
• Bookkeeping software (QuickBooks, Wave, etc.)

Insurance and Taxes

• STR insurance premiums
• Umbrella insurance (portion allocated to rental)
• Property taxes (portion allocated to rental use)
• Lodging taxes paid (county and township bed tax — these are a cost of business)

Marketing and Business

• Direct booking website costs (hosting, domain, design)
• Business cards, signage
• Travel to and from the property for management purposes (mileage at IRS standard rate)
• Home office deduction (if you manage the rental from a dedicated home office)

Record-Keeping

The IRS doesn’t accept “I think I spent about $500 on cleaning.” You need receipts, records, and documentation. Best practices:

• Use a dedicated business bank account and credit card for ALL rental expenses
• Save digital copies of every receipt (Dext, Expensify, or even a dedicated Google Drive folder)
• Track mileage with an app (MileIQ, Stride) every time you drive to the property
• Keep a log of days the property was available for rent vs. personal use
• Document capital improvements separately from repairs (improvements are depreciated; repairs are deducted in full the year incurred)

Schedule E: Where It All Goes

Rental income and expenses for most STR operators are reported on Schedule E (Supplemental Income and Loss) of your personal tax return. This is where you list gross rental income, then subtract all deductible expenses to arrive at net rental income (or loss). That net amount flows to your Form 1040.

If you provide “substantial services” to guests (daily cleaning, meals, concierge), the IRS may classify your rental as a business rather than passive rental activity, which would go on Schedule C instead. Most standard Airbnb hosting qualifies for Schedule E treatment, but consult a CPA for your specific situation.