Deductions

[Amy Davidson]

I operated an Airbnb out of my home that I occupy during 2023. Can I deduct expences (or a % of) such as homeowner's insurance, property tax, etc.?

[OpeA1]

Hello Amy Davidson!

The IRS allows you to deduct all expenses that are "ordinary and reasonable" for any business. The Airbnb is seen as a business and therefore, you can deduct all expenses related to running the Airbnb.

I hope this is helpful!

Thank you!

[MythSaraLee]

where is the entrance or data table for us to input the deductions?

I want to list my expenses for tools, insurances and other supplies.

[KarriC]

You will enter all your rental property expenses on Schedule E (or possibly Schedule C, based on your business and services you provide).

Congratulations on your new rental business! Assuming this is the first time you've rented, you will need to set up your rental information, including gathering everything needed to determine correct depreciation of your home. It is very important to get this set up correctly!

Expenses for the entire home (like insurance, mortgage, property tax, and utilities) will be listed on your Schedule E by category, and a percentage of the total for the year will be considered expenses attributable to the rental. The percentage will be figured out when you set up the asset depreciation.

I am including links to information you may find helpful in understanding everything that happens when you rent your home.  

TurboTax - Rental Real Estate and Taxes

TurboTax - Rental Property Tax Tips

TurboTax - Depreciation Recapture: Definition, Calculation and Examples

[MythSaraLee]

Thank you for the info of schedule E.

I think I maybe need the background data table while I was using in another state.

I already input my expense data for tools and donating contributions. It does not affect the main tax results any more. 

[MythSaraLee]

Does the "working tools" or "donations" qualify deductions for this year 2024?

Are the Energy Credits good for both living and working sites? Thanks.