yes. but the value is the lower of Fair market value or its adjusted basis (original cost less any amount previously deducted) on the date converted.
the next question is what is that amount. technically it should be depreciated over 7 years. since it was a personal asset converted to business use it does not qualify for section 179 (expensing) or 168(k) bonus depreciation.
However, if the amount is relative insignificant, i would probably expense it as an office expense. no guarantee that if audited the agent would see it that way. but having handled IRS audits in the past, most generally don't make small adjustments to tax returns because of all the paperwork and costs involved
