For Airbnb, Vrbo and direct-booking owner-hosts · Work directly with Philip M. Falco, CPA
You handle bookings, guest questions and property upkeep. Your tax return needs the same attention to detail. CPA of Denver helps short-term rental owners connect property records, hosting activity and their household or business returns through a defined preparation or planning engagement.
Whether you host a room, a vacation property or several rentals, start with a review of your ownership, records and goals. Based in Denver, we define federal and Colorado preparation, other-state filings and specialized analyses around the work required.
Short-Term Rental Tax Preparation Built Around Your Hosting Activity
An Airbnb or Vrbo summary is a starting point. We identify the records needed to reconcile the activity and prepare the agreed returns. The scope can address:
- Platform statements, Forms 1099-K, direct bookings, refunds, fees and bank deposits.
- Cleaning, supplies, utilities, insurance, management fees and other property costs.
- Acquisition records, furnishing purchases, improvements and depreciation history.
- Guest stays, owner and family use, services provided and participation records.
- Ownership through an LLC or partnership and coordination with owner-level reporting.
- Prior-year carryovers, missing records and any additional state returns.
Bookkeeping reconstruction, amended returns, new-property setup and specialized studies require a separate scope when needed. We confirm the accepted work and fee before preparation begins.
Tax Strategies Worth Reviewing Before Year-End
Start with the operating facts
For passive-activity purposes, an activity with an average customer stay of seven days or less is generally excluded from the rental-activity definition. Material participation then matters in determining whether the activity is passive. This does not automatically make a loss deductible against wages; other loss limitations can still apply. Review IRS Publication 925.
Bring reservation exports and a record of the work you and others perform. Before relying on an STR loss strategy, define the participation test, supporting records and owner-level limitations that need review.
Evaluate depreciation before ordering a cost-segregation study
Ask whether accelerated deductions would produce a usable benefit in your situation, what a study and implementation would cost, and how a future sale or change in use affects the comparison. Depreciation methods and eligibility depend on the property and applicable tax year. A cost-segregation study is separately scoped and may require another professional. See IRS Publication 946.
Keep rental and personal use visible
Owner and family stays can affect expense allocation and deduction limits. Keep a calendar that distinguishes guest stays, personal use and maintenance visits. Share it before the return is prepared. The relevant rules are described in IRS Publication 527.
Plan purchases, projects and cash for taxes
Before a major renovation, furnishing purchase, conversion or sale, bring the proposed timing and itemized costs for review. A planning engagement can compare the agreed scenarios and coordinate estimated payments with wages, other investments and business income. See our repairs and improvements guide and rental-sale planning guide.
Schedule E or Schedule C? Ask About Services, Too
Short stays alone do not determine the reporting schedule. Substantial services provided primarily for guests’ convenience can affect Schedule C reporting and self-employment tax. Describe what you provide during a stay, including cleaning, meals or other guest services. This reporting question is separate from the seven-day passive-activity exception. See IRS Topic 414.
What to Gather for Your STR Tax Review
- Prior federal and state returns, depreciation schedules and suspended-loss records.
- Year-end platform reports, Forms 1099, direct-booking records and property income-and-expense summaries.
- Closing statements, ownership details, loan statements and itemized project or furnishing invoices.
- A reservation and personal-use calendar, plus records of owner, spouse, cleaner and manager work.
- Property locations, local tax reports and details of planned purchases, sales or changes in use.
For your first inquiry, send only the tax year, number and locations of properties, ownership structure, preparation or planning needs and relevant deadline. We will provide secure document-transfer instructions for sensitive records.
Choose the Right Engagement
Return preparation: Request a quote based on your properties, ownership, records and filing requirements. Short-term rentals fall outside the $695 starting scope for one existing long-term rental.
A focused tax question: The $350 CPA Consultation covers up to one hour total for review, preparation and a telephone discussion combined. Return preparation, detailed projections and implementation are separate.
A broader planning decision: Compare tax-planning services and the Tax Strategy Series for separately defined analysis. For recurring support, request a fit review of annual advisory plans.
Questions Airbnb and Vrbo Hosts Ask
Can my Airbnb loss offset my W-2 income?
Possibly, depending on the activity classification, participation and applicable loss limits. Hosting through a platform does not establish eligibility. Bring your operating facts and prior-year loss history for review.
Does Airbnb or Vrbo handle all of my taxes?
Review platform collections separately from your income-tax filings. Ask which lodging or sales taxes are collected for each property and what filing or licensing duties remain with you. Income-tax preparation does not include local lodging-tax returns or licensing work unless expressly agreed.
Does putting the property in an LLC decide the tax treatment?
No. Ownership, federal tax classification and operating facts need review. Tell us about all owners and any entity elections before the engagement is quoted.
Can you help if I use a property manager?
We can review manager statements as part of the agreed preparation scope. Also provide the management agreement and describe your own work; a manager’s involvement matters when evaluating a participation-based strategy.
Tell Us About Your Rental
Request a scope review and quote for your Airbnb, Vrbo or direct-booking rental. For the wider property-tax picture, visit our real-estate investor hub.
Published October 26, 2026 · General information. Tax treatment depends on the applicable year and facts; the written engagement defines accepted services and fees. Airbnb and Vrbo are referenced to describe hosting platforms; no affiliation is implied.