Can I Deduct My Internet and Phone for STR Management?

• Reasonable — reflects your actual usage pattern
• Consistent — applied the same way year to year
• Documented — recorded somewhere you can produce if audited

Accepted approaches include:

• Time tracking: Log actual hours of business vs. personal use for a representative period (e.g., two weeks), then use that ratio as your annual allocation.
• Activity count: Count business-related calls, texts, or data sessions versus personal ones over a sample period.
• Reasonable estimate: A documented estimate ("approximately 35% of my phone time is STR management based on my hosting activity level") is acceptable if it is defensible and supported by your booking volume.

IRC §280A Considerations

IRC §280A generally restricts deductions related to a taxpayer's personal dwelling. Phone and internet expenses, however, are not dwelling expenses — they are communication and utility costs. The §280A limitations apply to home expenses allocated to rental use (such as mortgage interest, depreciation, and utilities of the home itself). Phone and internet expenses are separately analyzed under IRC §162(a) and your mixed-use allocation rules.

If you are also claiming a home office deduction under §280A(c)(1), be careful not to double-deduct internet: if internet is included in your home office's utility allocation under the regular method, do not also separately deduct the business portion of internet on Line 25. Pick one treatment and apply it consistently.

Documentation Best Practices

Good records protect your deductions in an audit. For phone and internet expenses, keep:

• Monthly statements showing service costs
• A written allocation methodology note (one paragraph in your records is sufficient)
• For dedicated lines: the account setup documentation showing the line is for business
• For shared lines: a brief activity log for a representative period to support your percentage
• The total annual cost and deductible amount you claimed

Frequently Asked Questions

Can STR hosts deduct their phone bill?

Yes. Phone expenses used for STR management are deductible under IRC §162(a) on IRS Line 25. If the phone is used exclusively for STR management (a dedicated business line), 100% is deductible. If the phone is shared with personal use, only the business-use percentage is deductible. A 30–50% allocation is common for hosts who use the phone primarily for personal use with significant STR management use.

Can I deduct my home internet for managing my Airbnb?

Yes, the business-use portion of your home internet bill is deductible on your tax return. If your home internet is shared between personal and business use, you must allocate — a common approach is to estimate the percentage of usage dedicated to STR management tasks. If you have a second, dedicated internet line installed exclusively for STR management, 100% of that line's cost is deductible.

What allocation method does the IRS accept for phone and internet?

The IRS requires a 'reasonable' allocation method. For phones, you can use time-based tracking (actual percentage of minutes or hours used for business), or a reasonable estimate documented in a log. For internet, hours-of-use tracking or a percentage based on business versus personal activities are both acceptable. The key requirement is that the method is consistent and documented.

Where do phone and internet deductions go on your tax return?

Phone expenses for STR management are reported on IRS Line 25 (Utilities). Internet expenses are generally reported on Line 25 as well, or on Line 27a (Other expenses) depending on your CPA's preference. Both reduce your self-employment income. Keep monthly statements and document your allocation method in case of audit.