When it comes to depreciation, you don't have a choice. If you don't depreciate, then later when you sell the property you *have* to reduce your cost basis by the depreciation you *should* have taken. So you're gonna lose either way. Depreciate the property and be done with it. (The program will pro-rate depreciation for the rental percentage.)
Now for the SCH C side of things, I need to know what state and county you are in. Also, if in a city, are you in the city limits? If so, what city? We'll check on line to see if any taxing authorities whose jurisdiction you fall under, have any special requirements for a B&B.
I know in my city (thankfully, I'm not in the city limits) if I rent space or a unit out for less than 30 days for *any one period* during the year, then it's considered the equivalent of a hotel for the *entire* year, and I would be subject to the bed tax for every single night rented during the year.
