Working on my US tax filing and my Schedule C loss for the year on STR biz in the suite attached to my primary residence is $9,000. There are a couple factors here.
It’s a modest side business. My gross is not impressive in any year, but was down almost 70% over prior year due to covid restrictions and covid caution.
The crawl space under the suite was wet causing terrible humidity and I had a hit for removal of sodden insulation and waterproofing. Then the dedicated A/C heat pump unit blew (only 7 years old arghhh!) and had to be replaced. So huge unexpected repairs & improvements --which I expensed in entirety under SHST (safe harbor for small taxpayers). rather than gradually capitalizing.
Also expensing per usual the proportional share of mortgage interest, property taxes, building depreciation, solar panel depreciation, utilities, lawn care, and any “whole house” supplies (e.g., the new boot scraper on the back walk), which deflates my gain every year.
I also expense a hefty annual long term care insurance bill. [Correction: Can’t deduct this with a loss, I forgot!]
Getting itchy to open my platform calendars again, post-vaccine. Thank goodness for the sprinkling of off-platform, trusthworthy returning guests!
I even had a pre-wedding breakfast hosted in the back yard by parents of the groom; no restaurants available of course. I have a 5 ft. Statue of Liberty back there, in memory of NYC roots and suitably masked. Photos were taken with it, nicely surrounded by Spanish bluebells.