Quick answer
Schedule E has 14 specific expense lines plus an "Other" catchall. Track each expense to the right line all year, not at tax time.
The lines: Advertising, Auto and travel, Cleaning and maintenance, Commissions, Insurance, Legal and professional fees, Management fees, Mortgage interest, Other interest, Repairs, Supplies, Taxes, Utilities, Depreciation, and Other. Each one has rules about what qualifies. The template below walks through every line in the order they appear on the IRS form, with examples for Airbnb hosts.
When Schedule E is the right form
Most Airbnb hosts file rental income on Schedule E (Supplemental Income and Loss). The IRS treats short-term rentals as rentals — not trades or businesses — even when the average guest stay is short. Schedule C only applies when you provide hotel-style services beyond what a typical landlord would (daily housekeeping, in-house meals, concierge work).
For deeper guidance on which form fits your situation, see our breakdown of Airbnb Schedule E vs. Schedule C. This page assumes you've already determined Schedule E is the right form.
The 15 expense lines on Schedule E (with Airbnb examples)
Schedule E lists expense categories on lines 5 through 19. The line numbers below match the IRS form so you can map any tracking template directly to the form your CPA will file.
| Line | Category | What Airbnb hosts include |
|---|---|---|
| 5 | Advertising | Listing photography, paid placement on platforms, listing-promotion ads, marketing collateral specific to the rental. |
| 6 | Auto and travel | Mileage to and from the property at the current IRS standard rate, or actual vehicle expenses. Out-of-town lodging when traveling for property business. |
| 7 | Cleaning and maintenance | Cleaner payments, turnover supplies, deep cleans, carpet cleaning, window washing, pressure washing. |
| 8 | Commissions | Sales agent or broker commissions paid for finding tenants — uncommon for STR hosts since platforms handle bookings, but used if you have a private rental agent. |
| 9 | Insurance | Short-term rental insurance (Proper, Steadily, Slice), liability policies, umbrella coverage allocated to the rental, host-specific platform coverage purchased. |
| 10 | Legal and professional fees | CPA, accountant, bookkeeping software, tax-preparation services, attorney fees related to the rental, professional consultations. |
| 11 | Management fees | Airbnb host service fees (3% per booking), VRBO commission, Booking.com commission, property manager fees, co-host fees. |
| 12 | Mortgage interest paid to banks | Interest portion of your mortgage payment from the bank's 1098 form — never the principal. |
| 13 | Other interest | Personal loan interest tied to the property (e.g., a renovation loan), interest on credit cards used exclusively for the rental. |
| 14 | Repairs | Plumbing fixes, electrical repairs, appliance repairs, drywall patching, minor paint touch-ups. Things that maintain — not improve — the property. |
| 15 | Supplies | Toiletries, linens, kitchen supplies, paper goods, coffee, snacks, batteries, light bulbs, garbage bags, cleaning chemicals. |
| 16 | Taxes | Property tax (real estate tax), local lodging tax, special assessments. Some states require occupancy or tourism taxes — those go here unless the platform collects and remits them on your behalf. |
| 17 | Utilities | Electricity, gas, water, sewer, internet, cable/streaming services for guests, trash collection, propane delivery. |
| 18 | Depreciation expense or depletion | Annual depreciation on the building (27.5-year schedule for residential rentals) plus separate schedules for appliances, furniture, and capitalized improvements. Calculated, not tracked as cash expense — see our Airbnb depreciation guide. |
| 19 | Other (list type) | Anything legitimate that doesn't fit above: smart lock subscriptions, security camera service, HOA fees allocated to the rental, pest control, lawn care, lockbox supplies, STR-specific software, noise monitoring services. |
What counts as Airbnb income on Schedule E
Schedule E line 3 (Rents received) captures gross rental income from each property. For Airbnb hosts that includes:
- Nightly rental payments from guests
- Cleaning fees collected from guests
- Pet fees, extra guest fees, late checkout fees
- Forfeited security deposits
- Damage reimbursements from AirCover or guest payments
- Security deposits being held (only forfeited portions)
- Sales tax or occupancy tax collected and remitted to government
- Refunds you issued to guests (these net against gross)
- Income from personal use of the property
1099-K reconciliation: The 1099-K Airbnb sends shows gross rental income before any fees were deducted. Report that gross number on Schedule E line 3, then deduct the Airbnb host service fee on line 11 (Management fees). Don't pre-net the fee. See our guide on how to reconcile your 1099-K with bank deposits.
Worked example: one property, one year
A single-property Airbnb host operating year-round. Numbers are illustrative — your property's actuals will differ — but the shape and ratios are realistic for a $48,000-gross-revenue STR in the mid-Atlantic.
| Line | Category | Amount |
|---|---|---|
| 3 | Rents received (gross) | $48,200 |
| 5 | Advertising | $320 |
| 6 | Auto and travel (mileage) | $680 |
| 7 | Cleaning and maintenance | $5,400 |
| 9 | Insurance | $1,180 |
| 10 | Legal and professional fees | $650 |
| 11 | Management fees (Airbnb host fee, ~3% of bookings) | $1,446 |
| 12 | Mortgage interest | $11,200 |
| 14 | Repairs | $880 |
| 15 | Supplies | $2,140 |
| 16 | Taxes (property + local lodging) | $4,800 |
| 17 | Utilities | $3,300 |
| 18 | Depreciation (27.5-yr schedule on $310K building basis) | $11,272 |
| 19 | Other (smart lock, HOA, software) | $540 |
| 20 | Total expenses | $43,808 |
| 26 | Net rental income (or loss) | $4,392 |
In this example the property is profitable on paper at $4,392. Many STR hosts show a paper loss because depreciation is a substantial non-cash deduction — that loss can offset W-2 income if the property qualifies for the STR tax loophole (7-day average rental period plus material participation).
Common mistakes that cost deductions
The same handful of mistakes show up in nearly every late-stage tax-prep scramble. All of them are avoidable with consistent tracking through the year.
A patch on the existing roof is a repair (line 14). A whole new roof is an improvement — capitalize and depreciate over years. Getting this wrong overdeducts in year 1 and underdeducts in years 2+. An IRS examiner will catch this on a multi-year audit.
Depreciation is one of the largest deductions a STR host gets — and skipping it doesn't help you later. The IRS treats depreciation as taken whether you claim it or not (Section 1250 recapture at sale). Always claim it.
A deposit you're holding is not income — it's a liability. Only the portion you forfeit (kept for damages) becomes income, in the year you forfeit it. Don't report deposits-collected as line 3 income.
The IRS requires a contemporaneous mileage log — date, origin, destination, miles, business purpose. A January reconstruction of last year's drives is the kind of record an examiner disallows. Track each trip as it happens. See our guide on tracking Airbnb mileage.
If you used the property personally for any portion of the year (even one weekend), expenses must be pro-rated between rental and personal use. The IRS personal-use rules are strict; mixing the two without allocation is a frequent flag.
Line 19 (Other) is for genuinely uncategorizable expenses. If you list "Miscellaneous $4,800" on line 19, an examiner will ask for the breakdown — and if you can't provide one, the whole line gets disallowed. Use the specific lines first; reserve Other for true exceptions.
Skip the spreadsheet — Field Ledger keeps the records organized
A spreadsheet works, but only if you maintain it all year. Most hosts don't — and then January becomes a receipt-hunting nightmare. Field Ledger lets you log each expense as it happens in plain language ("Home Depot $84 supplies, Visa"). The rule-based parser extracts the amount, vendor, and date into a structured record you (or your CPA) can map to Schedule E categories at filing time.
- One free-form entry per expense, mileage trip, or work hour
- Structured records your CPA can map to Schedule E categories
- CSV export your CPA can drop into any tax software
- Per-property tracking even with multiple rentals
Frequently asked questions
Do I file Schedule E or Schedule C for my Airbnb income?
Most short-term rental hosts file on Schedule E (Supplemental Income and Loss) because the activity is a rental, not a trade or business. Schedule C applies only when you provide substantial personal services to guests beyond what a typical landlord would (daily housekeeping, in-house meals, concierge-style services). The IRS treats most Airbnb activity as a rental even when the average stay is short, so Schedule E is the default.
What's the difference between a repair and an improvement?
A repair keeps the property in its current condition (fixing a broken faucet, patching drywall, replacing a worn carpet section). A repair is deducted fully in the year it's incurred under Schedule E line 14. An improvement extends the useful life, increases value, or adapts the property to a new use (new roof, new HVAC system, full kitchen renovation). Improvements must be capitalized and depreciated over multiple years rather than deducted immediately.
Are Airbnb platform fees an expense, or do I subtract them from income?
Report gross income (the full amount guests paid) on Schedule E line 3, then deduct the Airbnb host service fee on line 11 (Management fees). Do not net the fee out of income. The 1099-K Airbnb sends shows gross income before fees — this matches what you report on Schedule E line 3.
Can I deduct cleaning fees if I bill guests separately?
Yes. The cleaning fee Airbnb collects from the guest counts as rental income on line 3. The amount you pay your cleaner is deductible on line 7 (Cleaning and maintenance). These are tracked separately even though they offset each other almost entirely — the IRS expects to see both sides.
Do I need a separate Schedule E for each property?
You report each property in a separate column on the same Schedule E. The form supports three properties side by side; if you have more, attach additional Schedule Es. Income and expenses are tracked per property — never combined — because depreciation, repairs, and material participation hours all depend on per-property data.
What goes in the "Other" expense line on Schedule E?
Anything legitimately related to the rental that doesn't fit lines 5-18. Common examples for Airbnb hosts: smart lock subscription fees, security camera service, HOA fees specifically allocated to the rental portion, pest control contracts, lawn care services, lockbox supplies, and short-term-rental-specific software (like Field Ledger). Each item needs a brief description; the IRS instruction line is short, so use a single descriptive phrase per item.
Related guides
Sources
The key takeaway
Schedule E gives you 15 specific places to put your Airbnb expenses, and an examiner will check whether each one is documented and categorized correctly. Track by the 15 categories all year — never reconstruct in January — and your CPA can file a clean return in an afternoon. Skip the categorization and the same return takes a week of receipt sorting.