Bookkeeping and Accounting for Airbnb Hosts

As an Airbnb host, you can deduct a wide variety of expenses for tax purposes. Some of these include:

• Mortgage interest or rent on the property
• Utilities such as electricity, gas, water, and internet
• Insurance premiums for the property
• Property taxes
• Homeowner's association fees
• Cost of furnishing the property
• Costs related to advertising or promoting the rental property
• Professional cleaning expenses between guests
• Service fees charged by Airbnb
• Expense of maintenance and repairs

Remember, you can only deduct expenses that are directly related to your rental activity. It's recommended to keep your personal expenses separate from your Airbnb expenses to make this easier. Always consult with a tax professional to ensure you're accurately tracking and deducting your expenses.

Tracking and reporting your rental income from Airbnb can be accurately done by employing a bookkeeping service like Bench Accounting. By syncing your Airbnb account to Bench, all transactions related to your rental income can be tracked and categorized for you. This includes property management expenses, depreciation, repairs, and other deductible expenses. Furthermore, Bench provides you with clear, visual reports that show your income and expenses, making tax time a breeze.

There are a number of tax laws and regulations you need to be aware of when dealing with your Airbnb income. Key areas to consider include:

• Federal Income Tax: In the U.S., Airbnb income is generally subject to federal income tax, which means you need to report this income on your tax return.
• State and Local Taxes: Depending on your location, you may also owe state and local income tax on your Airbnb earnings. The specific requirements vary by state and municipality.
• Occupancy Taxes: Some cities and states assess short-term occupancy taxes that apply to Airbnb rentals.
• Self-Employment Taxes: If you're considered self-employed (which is often the case if you're regularly renting out property on Airbnb), you may also owe self-employment tax.
• Depreciation and Expense Deductions: Some of the expenses and depreciation of your rental property may be tax-deductible.

Because tax laws can be complex and vary greatly depending on your situation, we always recommend consulting with a professional to ensure your taxes are handled correctly and in compliance with all relevant laws and regulations.

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.