AirBnB & Short-Term Rental Tax Services
Schedule E reporting, Transient Occupancy Tax compliance, depreciation optimization, and LA Home Sharing permit guidance. All handled by an Enrolled Agent who understands the unique tax obligations of short-term rental owners in Los Angeles and California.
Free. No commitment. We assess your situation in 15 minutes.
In short: We prepare taxes for AirBnB and short-term rental hosts: Schedule E reporting, Transient Occupancy Tax compliance, depreciation, and 14-day rule analysis, plus guidance on Los Angeles Home Sharing permits. It is for rental owners who want an Enrolled Agent handling both the federal return and the local lodging-tax obligations that come with short-term rentals.
AirBnB Tax Obligations for LA Hosts
If you rent your property on AirBnB, VRBO, or any short-term rental platform, you have specific tax obligations at the federal, state, and local level. Unlike traditional long-term rentals, short-term rentals involve Transient Occupancy Tax (TOT), unique allocation rules for mixed personal/rental use, and city permit requirements.
Most AirBnB income is reported on Schedule E (not Schedule C), which means it is not subject to self-employment tax. However, you must properly allocate expenses between rental and personal use, calculate depreciation over 27.5 years, and ensure you are collecting and remitting the correct TOT to the City of Los Angeles.
Key Benefit: No Self-Employment Tax
Because most AirBnB income is passive rental income (Schedule E), you avoid the 15.3% self-employment tax that applies to Schedule C income. Proper classification can save you thousands of dollars each year.
Custom Quote
Every rental property is different. Pricing depends on the number of properties, income level, and complexity. We provide a tailored quote after reviewing your situation.
- Schedule E rental income reporting
- Depreciation calculation (27.5 year residential)
- TOT compliance verification
- Expense allocation (rental vs. personal use)
- 14-day rule analysis
- LA Home Sharing permit guidance
What's Included
Complete tax services designed specifically for AirBnB and short-term rental property owners.
Schedule E Preparation
Accurate reporting of rental income and expenses on Schedule E, including proper allocation between rental and personal use periods.
Depreciation Calculation
Building value depreciation over 27.5 years using the straight-line method, prorated for rental-use percentage. We ensure you claim every dollar you are entitled to.
TOT Compliance (LA 14%)
Verification that Transient Occupancy Tax is being correctly collected and remitted. In Los Angeles the rate is 14%. We review your platform settings and city filings.
Expense Documentation Review
We review all deductible expenses – cleaning, supplies, mortgage interest, insurance, utilities, repairs, and ensure proper documentation and allocation.
14-Day Rule Analysis
If you rent for fewer than 15 days, the income may be completely tax-free under IRC Section 280A(g). We analyze your rental activity to determine eligibility.
City Permit Guidance
LA requires Home Sharing Registration and a Business Tax Registration Certificate. We guide you through the requirements and ensure you stay compliant with the 120-day cap.
Build Your Expense Summary & Get a Custom Quote
Enter your property and rental details below. See an estimated tax calculation, then submit directly for a personalized quote from our team.
AirBnB Rental Income & Expense Builder
Enter your rental details. See your estimated tax. Submit directly for a custom quote.
Step 1: Property & Income
Total bookings from AirBnB (before platform fees)
Total nights the property was occupied by guests
Nights you or family used the property (affects deductions)
Purchase price or current value (for depreciation)
LA: 14%, Santa Monica: 14%, Culver City: 12%
Step 2: Expenses
Check expenses you incurred and enter the annual amount.
Typically 3% of booking total
Professional cleaning between guests
Toiletries, linens, towels, kitchen supplies
Portion allocable to rental use
Portion allocable to rental use
Homeowner's insurance + any short-term rental rider
Electric, gas, water, internet, trash
Fixes, plumbing, HVAC, painting
If applicable
Co-host or property manager fees
Professional photos, listing optimization
LA Home Sharing registration, etc.
Step 4: Get a Custom Quote
AirBnB tax situations vary. Submit your details and we'll provide a custom quote based on your property, income level, and complexity.
Your information is confidential. We will only contact you regarding your tax service.
Estimate only. Estimate only. Does not include state tax, AMT, or NIIT. Consult a tax professional for precise calculations.
Frequently Asked Questions
Common questions about this service area.
Related Guides
Learn more about this topic with our in-depth guides.
Los Angeles & Culver City Business Tax Guide
Gross receipts tax rates, small business exemptions, and local filing obligations for rental operators in Southern California.
Read GuideCalifornia Business Taxation Guide
Entity selection, the franchise tax, and LLC fees that apply to short-term rental owners who hold property in an LLC.
Read GuideThe Ultimate Guide to Small Business Taxes
Schedule E vs. Schedule C, deductions, depreciation, and estimated payments for rental and small business income.
Read GuideRelated Services
Explore other ways we support our clients.
Individual Tax Returns: $525
Full individual tax preparation including Schedule E rental income reporting, itemized deductions, and multi-state filing.
Learn MoreBookkeeping: $295/month
Monthly tracking of rental income, expenses, and depreciation schedules so your year-end filing is straightforward.
Learn MoreRental / Cost Seg Scan: $299
A feasibility scan of your rental property's depreciation, passive-loss position, and cost segregation potential, credited toward a full cost seg memo if you proceed.
Learn MoreRental Depreciation Correction (Form 3115)
Never took depreciation on your rental, or took too little? Catch up the missed deductions in a single tax year with a Form 3115 method change and Section 481(a) adjustment.
Learn MoreGet a Custom Quote for Your Rental Property
Every AirBnB property is different. Book a free consultation and we'll assess your tax situation, optimize your deductions, and provide a custom quote based on your property and complexity.
“Arc & Ledger provided exceptional service, making my tax preparation seamless and stress-free.”– Christian S., Google Review
Both reach the same Enrolled Agent review. After either one, you'll receive a secure Client Portal invitation to upload your documents.