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Can I write off furniture for my Airbnb?

Is Airbnb furniture tax deductible? Yes, furniture—and any costs to repair existing furniture—can be a deductible expense come tax time. The same applies to amenities and appliances you purchase for your guests, such as a toaster, a TV, bed sheets, and towels. Larger items are usually entered as assets that depreciate.



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Since 2018, short-term rental owners have been allowed to deduct the full cost of property such as appliances and furniture all in one year using 100% bonus depreciation. The deduction applies to new or used property placed into service from September 27, 2017, through December 31, 2022.

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The amount you can deduct depends on the amount of time your guests use the item. For example, if you host guests for 30 nights out of the year, you'll be able to deduct 8% of the annual cost of your utilities (garbage, electricity, water, gas), cable TV, and internet service. (30 is 8% of 365 days.)

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To account for short-term rental income, the 14-day rule allows Airbnb hosts to avoid paying taxes if they rent a property for fewer than 14 days per year. The 14-day rule is a common provision in tax laws that aim to combat abuses of short-term rental services like Airbnb.

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As a Third Party Settlement Organization (TPSO), Airbnb is required by the Internal Revenue Service (IRS) and state tax authorities to issue Form 1099-K to US citizen or US tax resident Hosts that meet 1099-K reporting thresholds.

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Airbnb earnings are not exempt. They're added to your total taxable income, and it's all taxed together. However, you may have a separate tax-free allowance from your main income if you rent a room on Airbnb.

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If you're hosting a stay, it's possible that not all of your Airbnb income is taxable. Deductible items may include rent, mortgage, cleaning fees, rental commissions, insurance, and other expenses.

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At the end of the year, Airbnb will send you an IRS Form 1099 (Form 1042-S for non-US persons) showing any withheld amounts. Once a Form 1099 or 1042-S has been issued, you may need to file a US tax return with the IRS to claim any refund or credit for the taxes withheld.

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As a Third Party Settlement Organization (TPSO), Airbnb is required by the Internal Revenue Service (IRS) and state tax authorities to issue Form 1099-K to US citizen or US tax resident Hosts that meet 1099-K reporting thresholds.

MORE DETAILS