Running a successful short-term rental isn’t just about five-star reviews and perfect guest experiences – it’s about keeping more of what you earn. Welcome to your crash course in STR tax mastery!
The Three Pillars of STR Tax Success
Let’s kick things off with the three most powerful (and often overlooked) tax strategies that can save you thousands this year:
1. The Home Office Game-Changer
Did you know? If you manage your STR business from home, you might be eligible to deduct a portion of your home expenses. We’re talking utilities, internet, and even mortgage interest. Quick tip: Keep a dedicated space for your STR management – it strengthens your deduction claim.
2. The Depreciation Gold Mine
Here’s where most hosts leave money on the table. You can depreciate not just the property structure, but also:
– Furniture (5-7 year depreciation period)
– Appliances (5 year depreciation period)
– Electronics (5 year depreciation period)
Real numbers: On a $30,000 furniture package, you could be looking at $4,285+ in deductions in year one alone!
3. Supply Chain Savings
Every hand soap, coffee pod, and welcome basket adds up. Create a system to track these seemingly small expenses – they can total thousands in deductions annually. Pro tip: Use a dedicated credit card for all STR purchases to make tracking a breeze.
Quick Win Action Step
Today, pull out your calendar and block 15 minutes to audit your property expenses for the last month.
Common Mistake Alert
One of the biggest errors we see at Kimber Accounting? Hosts mixing personal and business expenses. This not only makes tax time more stressful but could also raise red flags with the IRS.
