We purchased and completely furnished a cabin in Fall 2009. We rented it out twice in 2009.
I understand we can either deduct the interest on the loan or the business of renting it, but not both.
Do we have to have a business license to deduct this as a rental? Also, are we able to deduct the cost of furnishing it so we could rent it? Exactly what can we deduct if we claim this as a business?