Airbnb Tax Savings in 2025: What Every STR Owner Needs to Know

Intro

Owning a short-term rental isn’t just about creating unforgettable guest experiences—it’s also about making sure the numbers behind the scenes work in your favor. With the 2025 tax updates, STR owners have a powerful opportunity to lower taxable income and improve cash flow through bonus depreciation, cost segregation, and smart tax planning. At HomeSlice Stays, we help property owners go beyond management. We show you how to maximize the financial potential of your STR portfolio.

Big 2025 Update: Bonus Depreciation is Back

The Big Beautiful Bill Tax Act restored 100% bonus depreciation for property placed in service during 2025. What this means: - Deduct the entire cost of eligible 5- and 15-year assets in the very first year. - Potentially reduce not only rental income but also W2 or business income if you meet material participation rules. 👉 Want to see how this might apply to your property? Connect with HomeSlice Stays, and we’ll help you explore your options before tax season.

Who Benefits Most?

This strategy is ideal for short-term rental investors who want to offset income from their day job or self-employment. Even if you don’t qualify as a full-time Real Estate Professional (REP), you can still use STR-specific rules to capture significant tax savings.

The STR Loophole Explained

If your property averages seven days or less per stay, and you materially participate in managing it, the IRS does not treat your rental as “passive.” That allows you to apply deductions (like depreciation and interest) against your active income, not just passive rental income.

Depreciation: Your Biggest Tax Tool

Depreciation lets you write off the cost of your property over time. Normally, that’s 27.5 or 39 years—a long wait. With a cost segregation study, you can break your property into components: - Appliances, flooring, lighting → 5–7 years - Landscaping, driveways, pools → 15 years Usually, 20–30% of a property qualifies for these shorter schedules. Pair this with bonus depreciation, and you could deduct the full amount of those components in year one.

Real Example: $500K STR Purchase

Imagine you buy a $500,000 short-term rental in 2025: - Building value: $350,000 (after land excluded) - Cost segregation: $105,000 eligible for accelerated depreciation - Bonus depreciation: deduct all $105,000 in year one - Add standard depreciation (~$6,300), mortgage interest (~$24,000), furnishings (~$20,000) Total first-year deductions: ~$155,300 If you’re in a 30% tax bracket, that’s about $46,000 in tax savings in year one alone.

Why Partner with Professionals

Yes, you could try to piece this together yourself. But tax rules around STRs are complex, and a misstep could increase audit risk or cost you thousands in missed deductions. A trusted CPA and an IRS-compliant cost segregation study make all the difference. 👉 At HomeSlice Stays, we partner with seasoned professionals who specialize in short-term rentals. We’ll help you connect the dots between your property, your participation level, and the tax strategies available to you.

Key Takeaways for 2025

- Bonus Depreciation: Back to 100% for 2025—don’t miss the window. - STR Loophole: Offset W2/business income even without REP status. - Cost Segregation: Unlock 20–30% of your property for accelerated depreciation. - Professional Guidance: Always work with experts who understand STRs.

Ready to Capture Your Savings?

Tax strategies can feel overwhelming, but with the right guidance, they’re a game-changer for your short-term rental business. At HomeSlice Stays, we don’t just manage properties—we help owners think like investors. Our team can walk you through your tax-saving options and connect you with the right professionals to put them into action. 👉 Reach out today and see how much you could save in 2025.