How to Categorize STR Expenses on Schedule C in DeductFlow

The right category on the right Schedule C line isn't just a bookkeeping detail—it determines how your deductions appear on your tax return and what your CPA sees when they prepare your filing. Here's how to categorize every expense correctly in DeductFlow, with the full Schedule C line mapping for STR hosts.

The Full Schedule C Line Map for STR Hosts

Step-by-Step: Adding and Categorizing Expenses

1. 1

   Add the Expense

   Navigate to Expenses > Add Expense in the web dashboard, or tap the + button in the mobile app. Enter:

   • Amount — The exact amount paid
   • Date — Date of purchase (not the date you entered it)
   • Vendor — Business or person you paid
   • Property — Which STR this expense benefits (required for multi-property accounts)
   • Notes — Optional description for context

   Alternatively, connect your bank account or credit card under Settings > Integrations to import transactions automatically for batch categorization.

2. 2

   Select the STR Category

   From the Category dropdown, select the category that best describes the expense. DeductFlow's STR-specific categories include:

   • Cleaning & Turnover Services
   • Guest Supplies & Amenities
   • Maintenance & Repairs
   • Platform & Channel Fees
   • Property Insurance
   • Utilities (Property)
   • Legal & Professional Fees
   • Software & Tools
   • HOA & Association Fees
   • Mortgage Interest
   • Property Tax

   If an expense doesn't fit a specific category, use "Other Business Expense" and add a description. Your CPA can reassign it if needed.

3. 3

   Verify the Schedule C Line Mapping

   After selecting a category, DeductFlow displays the Schedule C line it will appear on. If you see a line number you don't expect, tap the info icon to read what belongs on that line. Common points of confusion:

   • Airbnb service fees — Goes to Line 8 (Advertising) or Line 27a, NOT deducted from income
   • Repairs vs. improvements — Repairs (same as before) = current expense; Improvements (better than before) = capitalize as asset
   • Furniture under $2,500 — Can expense via de minimis safe harbor; furniture over $2,500 goes to Assets
4. 4

   Attach a Receipt Photo

   Tap the camera icon to take a photo of your receipt, or upload a file (JPG, PNG, PDF). Receipt photos are stored linked to the expense record and appear in your exported reports. For IRS purposes, a valid receipt shows:

   • Vendor name and location
   • Date of transaction
   • Amount paid
   • Description of items purchased

   Credit card statements alone are insufficient—they show the amount but not what was purchased. Capture the actual receipt whenever possible.

5. 5

   Review Your Expense Report

   Navigate to Reports > Schedule C. Review expenses sorted by line number. Check:

   • Do line totals look reasonable compared to what you spent?
   • Are there any "Uncategorized" items that need assignment?
   • Are there large amounts on Line 27a that should be reclassified to a more specific line?

   Download the PDF and review with your CPA before filing. The report shows each line total plus supporting transactions, so your CPA can spot anything that needs to be moved.