Tax guide for short-term rental hosts and investors in Hot Springs, Arkansas. Deductions, depreciation, and local tax obligations.
All STR income is reportable to the IRS. Airbnb and VRBO issue 1099-K forms if you earn $600+ in a year. Track ALL income — including cleaning fees and extra guest charges.
Deduct: mortgage interest, property taxes, insurance, repairs, cleaning, supplies, platform fees, management fees, utilities, WiFi, landscaping, photography, and travel to the property.
You can depreciate your STR property over 27.5 years (residential) or 39 years (commercial). This is a paper deduction that reduces taxable income without cash outflow. Huge tax benefit.
If you rent your property fewer than 15 days per year, the income is completely tax-free. You don't even report it. Great for owners who rent only during Oaklawn racing season.
If you provide 'substantial services' (daily cleaning, concierge, meals), STR income may be subject to self-employment tax (15.3%). Standard Airbnb hosting typically avoids this.
Hot Springs collects accommodation/tourism taxes on short-term stays. Some platforms collect automatically — verify what's covered. You're responsible for any taxes the platform doesn't handle.
For properties over $300K, a cost segregation study can accelerate depreciation by reclassifying components (cabinets, flooring, fixtures) to shorter depreciation schedules. Saves thousands in taxes.
STR taxes are complex. A CPA who specializes in short-term rental taxation will save you far more than their fee. Ask specifically about their STR experience — general CPAs often miss deductions.
Yes. All STR income is reportable. You'll receive a 1099-K from Airbnb/VRBO if you earn $600+. However, deductions and depreciation often significantly reduce your taxable amount.
Mortgage interest, taxes, insurance, repairs, cleaning, supplies, platform fees, management, utilities, depreciation, travel to the property, and professional services (CPA, attorney).
The 14-day rule: if you rent fewer than 15 days per year, the income is tax-free. Otherwise, no — but proper deductions and depreciation can reduce your effective tax rate substantially.
Yes. Hot Springs charges accommodation taxes. Airbnb and VRBO may collect some automatically — verify with the city which taxes you're responsible for remitting directly.
Ask us anything. We'll connect you with the right resources.