What records do I need to keep for Airbnb taxes?
The IRS treats Airbnb income like any other rental income, which means you need documentation for both what you earned and what you spent. Airbnb sends a 1099-K if you earned over $600, but that form only captures gross bookings processed through their platform. It doesn’t account for direct bookings, cleaning fees collected separately, or the expenses that reduce your taxable income.
Keep records of all rental income from every source. Airbnb payouts, VRBO bookings, direct reservations through your own website. Download monthly statements from each platform showing gross booking amounts, service fees withheld, and net payouts. The gross amount is your taxable income, and service fees are a deductible expense.
Expense records fall into several categories. Operating expenses include cleaning costs, guest supplies, minor repairs, utilities, and services like lawn care or snow removal. Keep the actual receipt or invoice for everything, not just the credit card statement. A statement showing $150 paid to a cleaning company doesn’t prove what service was performed or which property it was for.
Property expenses require different documentation. Keep your mortgage statement showing interest paid, property tax bills, and insurance declarations. If you use the property personally at all, you’ll need to allocate these expenses between rental and personal use based on the number of days in each category.
Track your days carefully. The IRS distinguishes between rental use and personal use, and the ratio affects your deductions. If you stay at your own property, let family use it free, or rent below market rate to friends, those count as personal days. A simple calendar or spreadsheet works. Note each day the property was rented, vacant for maintenance, or used personally.
Depreciation requires knowing your cost basis. Keep your closing statement from the purchase, plus records of capital improvements like a new roof, HVAC system, or bathroom remodel. These add to your basis and affect both your annual depreciation deduction and your eventual capital gain when you sell.
In New Mexico, short-term rentals are subject to Gross Receipts Tax. Vacation rental operators in Santa Fe also pay lodgers’ tax on stays under 30 days. Keep your GRT filings and local tax payments organized by month or quarter so you can document compliance if questions arise.
Retain records for at least three years after filing the related tax return. If you claim depreciation, keep property documents for three years after you sell and report the gain. Seven years covers most situations comfortably.
The easiest approach is capturing records as they happen. Snap photos of receipts before they fade. Download platform statements monthly. Update your rental calendar weekly. Working with bookkeeping services Santa Fe NM hosts trust can help you stay organized throughout the year instead of scrambling every spring to reconstruct what happened.
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More Questions
When should I hire a bookkeeper?
When bookkeeping takes more time than it's worth, when you don't know your actual numbers, or when tax time becomes a scramble. Most business owners wait too long. Hiring before you're behind is cheaper than cleaning up the mess later.
Read answerHow long does catch-up bookkeeping take?
It depends on how far behind you are and how messy things got. A few months behind might take 1-2 weeks. A full year or more with missing records can stretch to 6-8 weeks.
Read answerWhat is the best way to organize receipts for rental expenses?
Go digital and organize by property first, then by expense category. Capture receipts immediately with your phone and store them in a cloud folder structure that mirrors your tax reporting needs.
Read answerHow do I calculate profitability for my short-term rental?
Profitability comes down to net revenue minus operating expenses. Track booking revenue after platform fees, then subtract cleaning costs, supplies, utilities, insurance, and all the other expenses that come with running the property.
Read answerWhat expenses should owner-operators track?
Owner-operators should track fuel, maintenance, insurance, truck payments, permits, tolls, meals, equipment, and professional services. Missing expense categories means overpaying on taxes and not knowing your true cost per mile.
Read answerWhat do I do if my books are a mess?
Stop adding to the pile, gather your bank and credit card statements, and assess how far back the problem goes. Whether you clean it up yourself or hire help depends on how many months you're behind and how tangled things are.
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