Thought I’d revive this thread as I finally finished my taxes. My STR loss for 2020 was $3806. This is only for the first half of 2020 since I switched to LTR in July. Excluding depreciation of the house for the half-year, the out-of-pocket loss is only $697. It’s actually a little worse than I expected, but thankfully not a complete disaster.
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It’s tax time again here so we’ve been going over our financials for last year, all I can say is that I wish I was you…
JF
Skint of Jerez
I definitely have more sympathy for hosts where STR is primary income vs. a side gig. I know that I have really low overhead. I paid off my mortgage early in 2020 and the interest for the entire year was only $83. Also, since I also knew I couldn’t go back to STR at the same time the pandemic started, I was able to immediately cut expenses by switching my insurance, disconnecting internet, turning off the water heater, unplugging the refrigerator, etc.
Honestly, if my overhead wasn’t so low, I don’t think I would’ve attempted STR. If I had purchased my listing in Dec 2018 (the time I started hosting) with a loan for an income property (interest rates in the 4.0% range), I don’t see how I could’ve have made a profit in the first 5 years, longer if I had to hire cleaners.
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