Hosting on Airbnb or a similar platform turns part of your home — or an entire investment property — into a source of taxable income, but it also opens up a set of deductions that regular homeowners cannot claim. The rules differ depending on how much of the year you rent, how much you personally use the property, and whether you rent your primary residence or a dedicated investment property.
The 14-day rule: your best-kept secret
If you rent out your home — including a room, or the whole place — for 14 days or fewer during the year, the rental income is not taxable at all, and you do not need to report it. This "Master's exception" (nicknamed for homeowners near golf tournaments who rent out during major events) applies to primary and secondary residences, not to a property that operates as a full-time rental business.
Rent for more than 14 days, and the entire arrangement flips: all rental income becomes taxable, but you also unlock the full set of rental deductions described below.
Depreciation: the deduction you don't write a check for
Once your property qualifies as a rental, you can depreciate the building's value (not the land) over 27.5 years, deducting a portion of the purchase price every year as a paper expense, separate from any cash you actually spend. This is often the single largest deduction for rental hosts and applies whether you use the property occasionally yourself or rent it full time (subject to personal-use limits below).
Operating expenses you can deduct
- Cleaning fees between guest stays, and any cleaning supplies purchased for the rental.
- Platform service fees charged by Airbnb, Vrbo, or similar services.
- Utilities, internet, and streaming subscriptions provided to guests.
- Repairs and maintenance directly related to the rental (a broken appliance, repainting between guests).
- Property management fees, if you use a co-host or management company.
- Mortgage interest, property taxes, and insurance, prorated for rental use if the property is also used personally.
- Furniture, linens, and small appliances purchased for guest use.
Mixed personal and rental use changes the math
| Personal use during the year | Tax treatment |
|---|---|
| 14 days or less rented total | Income tax-free, no deductions needed or allowed |
| Rented more than 14 days, personal use ≤ 14 days (or 10% of rental days) | Treated as a rental property — full deductions, including depreciation, prorated to rental use |
| Significant personal use above that threshold | Treated as a personal residence with limited rental deductions — expenses capped at rental income |
If you occasionally stay at the property yourself, keep a simple calendar log of personal-use days versus rental days — this single record often determines which column of that table applies to your entire return.
Travel to manage the property
If you travel to the rental to handle maintenance, restock supplies, or meet with a contractor, that travel — mileage, lodging if it requires an overnight stay, and related costs — is generally deductible as a rental business expense, separate from any personal vacation days you tack on. See our guide on the standard mileage rate vs. actual vehicle expenses to choose the right method for tracking that travel.
Reporting: Schedule E, not Schedule C, for most hosts
Most short-term rental income is reported on Schedule E as rental income rather than Schedule C as self-employment income, which means it is typically not subject to self-employment tax — though this can change if you provide hotel-like services (daily cleaning, meals, concierge services) that push the activity into a trade or business. If your hosting involves substantial services beyond a typical rental, talk to a tax professional about which schedule applies.
Frequently asked questions
Do I need to depreciate my rental, or can I skip it?
Depreciation is generally required, not optional — the IRS assumes you took it (a rule called "allowed or allowable") when you eventually sell the property, even if you never actually claimed it, so skipping it usually just costs you money without avoiding future recapture tax.
Can I deduct a loss from my Airbnb against my other income?
Rental losses are often limited by passive activity loss rules unless you qualify as a real estate professional or meet active participation exceptions with income limits. This is an area where professional guidance pays for itself.
What if I only rent out one room in my house?
You can still claim rental deductions, prorated based on the square footage and time the room is rented versus used personally — similar in spirit to the home office deduction's business-use percentage.