The furniture is not what is referred to as improvements - there is no permanent attachment to the land or building. add them separately. furnishings are 5 year property which Turbotax will use when you select rental furnishings or appliances, caroet, furniture (depends on version you using) as the property type. the basis for depreciation is the lesser of your cost or fair market value when you place it into rental service. while Tutbotax asks for cost there is a side note that says (this conforms to the tax laws)
When you convert personal use property to business use (or for the production of income), the basis for depreciation is the LESSER OF:
* the fair market value on the date you placed the property in service (if you are converting your vehicle to business use, you may use the blue book value at the time of conversion to determine its fair market value), OR
* your adjusted basis on the date you placed the converted asset in service.
