Airbnb hosts often look for ways to maximize Airbnb tax deductions. However, they should acknowledge that not all expenses qualify. One of the initial questions is: Are Netflix and Amazon Prime deductible for Airbnb? The answer varies on how these services are used.
When Can Netflix Be Deducted?
The IRS enables the deduction of specific business expenses that are ordinary and necessary. If Netflix is offered exclusively as a guest amenity, such cost may be eligible. However, if the subscription is shared for personal use as well, only the portion allocated for Airbnb guests can be deducted.
How to Deduct Streaming Services for Airbnb
In order to determine if Netflix is deductible, the following subjects should be considered:
- Exclusivity: If Netflix is merely used for Airbnb guests and not for personal use, it might be fully deductible.
- Partial Deduction: If shared, only the guest-use portion can be deducted. The deduction should be proportional to the time the rental is leveraged by guests.
- Record-Keeping: A separate account for guest use strengthens the tax claim.
Other Entertainment Expenses That May Be Deductible
Airbnb hosts can also consider deductions for:
- Wi-Fi and Internet services provided for guests
- Cable TV or other streaming platforms if included as guest amenities
- Smart TVs or media devices purchased for the rental unit
What Airbnb Hosts Should Know
- The IRS necessitates that business expenses are reasonable and directly related to rental operations.
- If the subscription is used personally, hosts should allocate them and deduct only the guest-use portion.
- Healthy recording practices as well as receipts establish compliance in case of an audit.
Conclusion
Netflix can be deducted as part of Airbnb tax deductions. But, it should be acknowledged that only if it is used strictly for guest entertainment. Airbnb hosts should record usage and separate personal and business expenses.
