Tax Strategies & Credits

Short-Term Rental (Airbnb) vs Long-Term Rental: Key Tax Deductions Every Property Owner Should Know

by
Phuc Nguyen
on
4/1/2025
Short-Term Rental (Airbnb) vs Long-Term Rental: Key Tax Deductions Every Property Owner Should Know

If you're a property owner renting out your space—whether as a traditional long-term lease or a short-term vacation rental on platforms like Airbnb—you may be missing out on valuable tax deductions. At Thanh Dat Tax & Accounting, we help real estate owners across the country understand and claim the deductions they deserve. Here's what you need to know about how the tax rules differ between Airbnb hosts and long-term rental landlords.

🏠 Long-Term Rental Property Deductions

Long-term rentals (typically leases lasting 12 months or more) qualify as passive income under IRS rules. As a landlord, you may be able to deduct:

Mortgage interest

Property taxes

Depreciation

Repairs and maintenance

Insurance premiums

HOA fees

Legal and professional fees (like tax prep or property management)

These deductions help reduce your taxable rental income—especially when your property is occupied most of the year.

Tip: Make sure your records are accurate and well-organized. Thanh Dat Tax offers full-service bookkeeping and expense tracking for rental property owners.

🏡 Airbnb & Short-Term Rental Deductions

Airbnb rentals (or other short-term platforms like Vrbo) are taxed differently, especially if you're involved in managing the property. These rentals may be considered active income, which comes with unique tax implications and deductions.

In addition to the deductions available to long-term landlords, Airbnb hosts may also deduct:

Cleaning fees and supplies

Guest amenities (coffee, toiletries, welcome baskets, etc.)

Advertising & listing fees (Airbnb service fees)

Utilities (if you pay them)

Furnishings and décor

Travel expenses if you manage remotely

However, short-term rental owners may also be subject to self-employment taxes if they provide hotel-like services (e.g., regular cleaning, breakfast, concierge support). This is where working with a knowledgeable tax advisor is crucial.

⚖️ Major Differences in Tax Treatment

Category Long-Term Rental Airbnb / Short-Term Rental
Type of Income  Passive Active or Passive (depending on services)
Subject to SE Tax No Yes more likely
Deduct Guest Amenities No Yes
Must Issue 1099s Often Not Required Often Required
Depreciation Yes Yes

At Thanh Dat Tax & Accounting, we specialize in helping real estate investors, Airbnb hosts, and landlords maximize their tax savings. Whether you're running a short-term vacation rental or managing a portfolio of long-term properties, we tailor our services to fit your unique tax needs.

✅ Expert Tax Filing

✅ Depreciation & Deduction Planning

✅ IRS Compliance Support

✅ QuickBooks for Rental Properties

📞 Contact us today at +1 206-483-9729 or visit www.thanhdattax.com to book your consultation.

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Phuc Nguyen

Phuc Nguyen

Principal Tax Consultant

I am Phuc Nguyen, Principal Tax Consultant at Thanh Dat Tax & Accounting. With over several years of experience, I specialize in tax planning, payroll, and small business accounting. I’m passionate about helping clients maximize deductions, stay IRS-compliant, and feel confident about their finances year-round.

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