Be it for a SCH C business or SCH E rental property, assets are just that..... assets. They are listed in the Business Assets Section for a SCH C business, or the Assets/Depreciation section for a SCH E rental property. Those assets are then depreciated over time, based on the classification of the asset.
When the asset was purchased, while reported, has no affect on the deductible depreciation. Depreciation starts on the "in service" date, which is the date you placed that asset "in service" for the business or rental. Assets are NOT at any time ever, an expense, and definitely not a start-up expense.
