Why an Airbnb needs a depreciation schedule
A well-presented Airbnb or short-term rental property typically has a full furniture package, quality appliances, smart technology, and ongoing investment in styling and equipment. This makes it one of the best candidates for a professional depreciation schedule.
Why Airbnb properties generate strong depreciation
More Division 40 assets: A furnished short-term rental has far more depreciable assets than a typical residential rental (which may have only minimal furnishings). Every sofa, bed, television, kitchen appliance, smart device, and piece of decorative furniture is a separate depreciating asset.
Faster asset turnover: Short-term rental assets often need replacing more frequently due to higher usage. A quality depreciation schedule allows you to write off worn-out assets and claim new replacements efficiently.
Higher opening values: Assets purchased specifically for a quality short-term rental (premium mattresses, smart systems, styling pieces) often cost more than basic rental furnishings — meaning higher initial depreciation in the early years.
What a depreciation schedule covers for an Airbnb
How the schedule interacts with apportionment
The schedule provides the full-year deduction figures. Your accountant then applies the rental use apportionment (based on your booking and diary records) to determine the claimable amount for that tax year.
The cost vs benefit calculation
For an Airbnb with a full furniture package:
- Depreciation schedule cost: typically $600-$900
- Likely first-year depreciation (before apportionment): $8,000-$25,000+
- At a 37% tax rate, that saves $2,960-$9,250 in the first year alone
When to get a schedule
Order the depreciation schedule:
- When you first start renting the property
- When you make significant additions or furnishing upgrades
- If you have been renting for some time without one (a backdated schedule can allow amended returns)