Questions about DeductFlow and STR tax records
Answer first, source close by. Here is what the app does, what the IRS materials say, and what still requires judgment from your own tax professional.
Product
What the app is—and what it is not.
What is DeductFlow?
DeductFlow is a recordkeeping app for short-term rental owners. It organizes expenses, income, mileage, active hours, depreciation information and property-level records, then produces PDF and CSV exports for CPA handoff. It does not file returns or decide whether a deduction or tax position is allowed.
What does DeductFlow mean by “Prove it.”?
“Prove it.” means keeping a history behind your rental records: when records were added, when they changed, what supporting files were attached, and, where available, how the record was created. DeductFlow does not determine whether a deduction qualifies, prove that an activity occurred, or guarantee a tax outcome.
Does DeductFlow connect to my bank or file my taxes?
No. You enter or import records; DeductFlow does not request bank access. Its exports are designed to organize information for review, not submit a tax return.
Expense records
Does putting an expense in DeductFlow make it deductible?
No. DeductFlow records the amount, date, vendor, category, property, notes and receipt you provide. A tax professional determines whether the expense is allowed and how it should be treated. For general federal guidance, see IRS Publication 527.
Can I attach receipts and import a spreadsheet?
Yes. You can attach receipt images to expense records and import expense CSV files. The import maps data into DeductFlow; review the result before relying on it.
Mileage
What should I record for a business mileage trip?
IRS Publication 463 identifies the date, business destination, business purpose, mileage for each business use and total miles for the year among the records used to substantiate car expenses. DeductFlow stores trip dates, locations, purposes, distance, vehicle and related property.
Does DeductFlow automatically track trips with GPS?
No. DeductFlow does not run continuous background GPS tracking. You can enter addresses or saved locations, use your current location when you choose, calculate route distance, or enter mileage manually.
Does the app decide whether a trip is deductible?
No. A route and business-purpose field help document the facts, but they do not establish tax treatment. Publication 463 says timely records have more value than later statements, so record trips near the time they occur and keep supporting evidence when available.
Material participation & active hours
What is material participation?
Material participation is an IRS standard used in applying the passive activity rules to a trade or business activity. IRS Publication 925 lists seven tests. Whether those rules and any rental-activity exception apply to a particular short-term rental depends on the facts and should be confirmed with a tax professional.
Is reaching 100 hours enough to establish material participation?
No. Under one of the seven tests in IRS Publication 925, participation must exceed 100 hours during the year and be at least as much as any other individual’s participation. Reaching 100 hours alone does not satisfy that test.
Does an average guest stay of seven days or less automatically make my income nonpassive?
No. A short average rental period can affect whether an activity is treated as a rental activity under the passive activity rules, but it does not by itself establish material participation or make the income nonpassive. Other facts and limitations still matter. See the rental-activity exceptions and material-participation tests in Publication 925.
What does the active-hours tracker record?
DeductFlow can record the date, duration, activity, description, participant and property for each entry. It offers a live timer and manual entry, participant totals, progress toward a selected target and an export for review. It does not certify material participation.
Do I need a daily contemporaneous hours log?
Publication 925 says you may use any reasonable method to prove participation and do not have to keep contemporaneous daily logs if you can establish participation another way. A timely detailed log can still make the work and approximate hours easier to support.
Schedule C or Schedule E
Does rental duration decide whether I file Schedule C or Schedule E?
No. IRS Publication 527 and the Schedule E instructions generally use Schedule E for residential rental real estate, while Schedule C may apply when substantial services primarily for the tenant’s convenience are provided. The length of a guest stay alone does not decide the form.
Does material participation decide Schedule C versus E?
Not by itself. Material participation addresses the passive activity rules. The reporting schedule involves additional questions, including the nature of services provided. Ask your preparer which form fits your activity.
Reports & CPA handoff
What is in the CPA Package?
Paid Pro is required for reports and exports; they are not available during the trial. The PDF can include a profit and loss summary, expense detail, mileage log, depreciation information, active-hours records and entered cost-segregation totals. CSV exports support spreadsheet workflows. These files organize your records; they do not file a return or guarantee compatibility with a tax professional’s software.
Has DeductFlow’s tax content been reviewed by a CPA?
No independent CPA review is claimed. Educational answers link directly to IRS publications and instructions where relevant. DeductFlow’s founder is not presented as a tax professional, and users should ask their own qualified adviser how the rules apply to them.
Pricing & limits
How much does DeductFlow cost?
The free plan supports one property, 50 expenses per year and 20 mileage entries total. Pro adds unlimited properties, expenses and mileage plus active hours, CPA-ready PDF export, cost segregation, depreciation and employee payment tools. Pro is $24 per month or $149 per year. New accounts receive a 7-day desktop trial without a credit card. Reports, exports, and Mobile Companion require paid Pro and are not included in the Free plan or the 7-day desktop trial.
Can I cancel a paid plan?
Yes. You can cancel from account settings and retain paid access through the current billing period before returning to the free plan.
Data & security
Where are my records stored?
Signed-in records are stored with Supabase and protected by row-level access policies. The app also keeps a local browser copy for performance and offline workflows. Review the privacy policy for current data practices.
Can I download my data?
Yes. Backup & Restore exports a JSON backup, and reporting tools provide PDF and CSV outputs for supported records.
Prove it.
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