Airbnb hosts usually ask, "Are Netflix and Amazon Prime deductible for Airbnb?" at the beginning of their operations. Well, the IRS allows deductions for expenses directly related to the operation of a rental business. However, determining whether an Amazon Prime subscription qualifies varies on the usage.
When Can Amazon Prime Be Deducted?
An Amazon Prime subscription can be deducted only if it is primarily for business purposes. If it is used for guest entertainment or marketing as well as business-related purchases, a portion—or in some cases, the entire cost—might be qualified as an Airbnb tax deduction.
- Guest Entertainment: If Amazon Prime Video is presented exclusively for guests, it may qualify as a business expense.
- Supplies & Business Purchases: Prime shipping benefits used to order goods in relation to Airbnb essentials (cleaning supplies, linens, guest amenities) can make a portion of the cost deductible.
- Marketing & Business Development: If Prime is used for business-related materials, like photography equipment or hosting guides, qualification is possible.
Partial vs. Full Deduction
If Amazon Prime is used combined: personally and for business, only the business portion is deductible. An arm’s length percentage should be allocated based on actual business use.
- Fully Deductible: If Prime Video is offered exclusively to guests.
- Partially Deductible: If used for both personal and business reasons.
What Documentation Is Necessary?
Healthy record tracking is a must in order to claim Amazon Prime as a short-term rental tax write-off:
- Receipts or invoices presenting the subscription cost.
- Notes or spreadsheets that track how the service is used.
- Documentation of guest-related entertainment offerings.
Other Streaming & Subscription Services
- Netflix & Hulu: Deductible if leveraged exclusively for guests.
- Business Software: Subscriptions to software tools for managing bookings or marketing can be written off.
- Streaming Devices: Fire Stick or similar devices purchased merely for the rental may have eligibility as well.
Conclusion
Amazon Prime can be deductible if directly tied to business use. In order to claim such a deduction, hosts should track usage, maintain records, and allocate the appropriate portion of the cost. It should be noted that tax professionals may establish full compliance and optimize Airbnb tax deductions when in doubt.
