Short-Term Rental Tax Preparation Services
Turn platform statements, property records and participation evidence into an organized filing package for your Airbnb or VRBO business.
Airbnb and VRBO records need a complete return review
A platform payout is not a complete income statement. Gross bookings, cleaning charges, platform fees, refunds and owner expenses need to reconcile before a short-term rental return is prepared. AE scopes filing work around those operating records and the property’s ownership and depreciation history.
This service fits STR owners with new properties, mixed personal use, cost segregation, co-hosts, property managers or multiple listing platforms. Establish the filing facts before treating an expected deduction as available.
Four separate questions to resolve
Income reconciliation
Tie platform gross receipts, refunds, fees and bank deposits together. Review Forms 1099-K alongside the underlying statements rather than counting the same receipt twice.
Reporting and services
Evaluate Schedule E or Schedule C reporting based on actual operations and services. A short average guest stay alone does not determine Schedule C treatment or self-employment tax.
Participation and loss treatment
Review average customer use and relevant participation records. The rental-activity exception and material participation are separate questions; neither bypasses every loss limitation.
Depreciation and personal use
Reconcile purchase basis, furniture, improvements, dates available for rent and any study. Review owner or family use and applicable expense-allocation limits.
Your STR preparation checklist
- Annual booking exports by property showing stay dates, charges, cleaning fees, refunds and cancellations.
- Platform statements and Forms 1099-K, bank records and a property-level expense ledger.
- Closing statements, improvement and furnishing invoices, prior depreciation schedules and studies.
- Personal-use calendar, maintenance visits, owner and spouse activity logs, and manager or co-host duties.
- Ownership documents, prior returns, suspended-loss records and state or local filing history.
Federal income tax preparation does not automatically include lodging-tax registration, local licensing or occupancy-tax returns. Confirm those responsibilities separately, including what each platform remits and what remains with the owner.
Example: one property on two platforms
Illustrative preparation scenario. An owner lists one property on Airbnb and VRBO and buys furniture after closing. The preparer reconciles both platforms to the same property ledger, separates furniture from the building, and checks whether a cost segregation report already includes any of those items.
The review also considers guest stays, personal use and participation evidence. The result can identify an available reporting approach or a need for more records; it does not guarantee that depreciation will offset W-2 income.
What to confirm before you engage
Preparation and planning
Return preparation reports the year’s activity. A separate planning assignment can evaluate next year’s decisions. Identify each deliverable and the person responsible for implementation.
Fees and timing
The quote depends on entities, properties, states, record quality and prior-year issues. Bookkeeping cleanup, amendments, studies, payroll corrections and additional returns must be expressly included or separately priced.
Review published advisory pricing for context. A planning fee is not automatically a quote for return preparation. Agree on the tax year, forms, filing jurisdictions, review process and document cutoff before relying on a delivery date. An extension generally extends filing time, not payment time.
Short-term rental filing questions
Does an average stay of seven days or less mean I must use Schedule C?
No. The seven-day rule concerns the passive-activity definition of a rental activity. Reporting and self-employment tax involve separate analysis, including the services provided to guests.
Can you implement a cost segregation report on the return?
Discuss it during intake. Provide the full report, prior schedules, purchase allocation and separately acquired assets. Current-year implementation and a prior-year accounting-method change can require different scopes.
Do I need to be a real estate professional for STR losses?
Not necessarily for an activity that falls outside the passive-activity rental definition, but material participation and other limitations still require review. Classify the activity using actual annual facts.
Does hiring a property manager prevent a deduction?
A manager changes the participation facts; it does not produce a universal answer. Review your own work, other individuals’ hours where relevant, the applicable test and supporting evidence.
Connect preparation to the larger property decision
References: IRS Publication 527 and Publication 925: Passive Activity and At-Risk Rules.
Start with the decision and the records.
Tell us the entities, properties or income sources involved, the tax years to address and any approaching deadlines. We will discuss fit and define the work in writing before an engagement begins.
Published by AE Tax Advisors · Updated October 24, 2026. General educational and service information. Your signed engagement defines the work, responsible professionals and fees. Tax treatment depends on your facts and the applicable tax year.
Learn about our team and editorial process. Provide sensitive records through the approved client portal after intake.