Assuming you own the property you complete a schedule e just like you would for any rental property covering depreciation, property tax, utilities etc as costs against your income. It's not that hard to do with turbotax assuming you are tracking your expenses.
If if you don't own the property you can't deduct your rentals costs etc.
I was wondering about the State of Washington business tax and the City of Seattle business tax. I assume that these taxes are owed, too. Any suggestions?