No, it is not supplies. The furniture was "placed in service" when it was installed in the home and available for rent, even if it was not actually used. As SweetieJean indicated, the furniture and bedding would normally be depreciated. If the ''assets" were placed in service and disposed of (sold) in the same year, you do not claim any depreciation. You do not claim depreciation in the year the asset was sold. You have a short term capital loss, for the difference between what you bought the assets for and sold them for.
