STR Taxes 101 (US): Income, Expenses, and Depreciation

HospitableFeb 25, 20261h 2m76 viewsScore 85
Regulations & Compliance
intermediate
STR taxes
income reporting
expense tracking
depreciation
passive vs active income
M

Summary

AI-generated

This video breaks down short-term rental taxes for US hosts, covering how to report income and expenses, understand depreciation, and differentiate between repairs and improvements. It also explains the crucial distinction between passive and active income and how to leverage the short-term rental tax loophole.

Key insights

  • Short-term rental activity can be treated as ordinary income (active) if the average customer stay is 7 days or less, or if substantial services are provided for stays of 30 days or less, provided material participation is met.

Mistakes to avoid

  • Allocating net payouts as income instead of gross income can trigger IRS scrutiny and lead to underreporting of income, especially with increasing platform fees.

Tools & resources

  • Hospitable Help Articlesresource

    Hospitable offers help articles with lists of income and expense accounts categorized for owners, arbitrage operators, and property managers.

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial