Additionally, if you purchase the furniture and then later place it into service in your rental property, you are required to use the lesser of your cost or fair market value at the time the furniture is placed in service.
Chances are you will have to use the fair market value rather than cost since furniture depreciates in value rapidly (for tax purposes and otherwise).
Just as a very rough example, a couch that cost you $1,000 might only be worth $700 a year later when it is placed in service and, in that event, you would use $700 as your basis for depreciation.
