STR Airbnb Home Office Deduction Allocator – Excel Tax Template

Make your home office pay you back. Home office deduction calculator for Airbnb and STR hosts. Simplified $5/sqft vs actual method, side-by-side. Pub 587. Editable Excel.

Your laundry room handles cleaner pickups, supply staging, and your iPad while you
manage bookings. Your dining table is where you reconcile receipts and chase contractor
W-9s. There's a dedicated corner of your office that exists only for managing the STR.

The IRS allows a home office deduction for any space used regularly + exclusively for
the business — and most STR hosts qualify. Most don't take it because the math feels
intimidating and they're worried about audit risk.

This workbook handles both. Two methods side-by-side, audit-defense documentation
built in, ready for Form 8829 (Schedule C) or Schedule E line allocation.

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WHAT'S INCLUDED
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📋 Two-Method Comparison (the headline)
· Simplified method: $5/sqft up to 300 sqft = $1,500 cap
· Actual method: % of home expenses (utilities, insurance, depreciation, mortgage interest)
· Side-by-side dollar comparison — pick whichever's higher

📋 Home Office Inventory
· Dedicated room or partition (regularly + exclusively used)
· Square footage measurement
· Photos checklist for audit defense

📋 Actual-Method Worksheet
· % of home = office sqft / total sqft
· Indirect expenses: utilities, homeowner's insurance, mortgage interest, property tax, repairs
· Direct expenses: paint, supplies for office only (100% deductible)
· Auto-totals at the IRS rate

📋 Schedule E vs Schedule C Routing
· Schedule E filers: deduction goes on Line 19 (Other) with substantiation
· Schedule C filers: Form 8829 attached to Schedule C
· Decision footnote based on your Settings tab classification

📋 Audit-Defense Documentation
· Regular + exclusive use checklist (Pub 587)
· "Principal place of business" test
· Photo evidence checklist (room dimensions, equipment, no-personal-use proof)

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WHY STR HOSTS NEED THIS
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The home office deduction has a reputation for triggering audits. It's overblown
— audit rates on the deduction haven't been elevated since 2014. The actual risk
is taking it WRONG: claiming a space that doubles as a guest room, or the kitchen
table, or anywhere with personal use mixed in.

This workbook keeps you on the right side of "regular + exclusive use" and produces
the documentation a CPA or auditor wants to see. The dollars: a 200 sqft home office
at the simplified rate is $1,000/year, every year. At a 24% bracket that's $240/year
in tax saved on a $27 workbook. Year-one ROI: 9×.

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WHO THIS IS FOR
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· Airbnb / VRBO hosts who manage bookings from a dedicated home office or corner
· Multi-property operators with home-based ops (supply staging, paperwork)
· Schedule C STR filers (active business — full deduction available)
· Schedule E filers who want the allocated portion of home expenses
· Anyone whose CPA suggested skipping the deduction "to be safe"

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WHO THIS IS NOT FOR
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· Hosts whose only "office" is a kitchen table or shared family space
(regular + exclusive test fails)
· Hosts whose property manager handles all admin
· Renters whose lease prohibits business use (separate rules)

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HOW IT WORKS
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1. Open the workbook. Pre-loaded with sample data.
2. Measure your home office square footage and total home square footage.
3. Enter both on the Inventory tab.
4. Enter your annual home expenses on the Actual Method tab (utilities, insurance, etc.).
5. Open the Comparison tab — both methods sit side-by-side. Pick the higher one.
6. Print the Audit-Defense tab as supporting documentation. File with your taxes.

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FILE COMPATIBILITY
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✅ Microsoft Excel 2016+ (Windows and Mac)
✅ Microsoft Excel 365
✅ Google Sheets

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REFUNDS + SUPPORT
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14-day refund, no questions asked. Email hello [!at] thestrledger.com — real humans,
fast replies.

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ABOUT THE STR LEDGER
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Business-grade Excel systems for serious short-term rental hosts.
Full template library at thestrledger.com.

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⚠ Digital product. Not tax advice. Consult your CPA. IRS Pub 587 (Business Use of Your Home)
is the canonical reference for the home office deduction.