Airbnb Tax Loss

If you actively participate in the rental activity by making management decisions, such as approving new tenants, deciding on rental terms, and approving expenditures, up to $25,000 may be deducted as an annual loss as long as your adjusted gross income is $100,000 or less. The loss deduction phases out between $100,000 and $150,000 of income.

You may have a loss for tax purposes even if your rental income exceeds your operating expenses. This is because you get to deduct depreciation without actually spending money.

If you personally use the rental property for more than 14 days or more than 10% of the number of days it is rented -- whichever is greater -- it is considered a personal residence. You can deduct rental expenses up to the level of rental income. But you can't deduct losses.