@tagteam I know it is not a common situation. I have gotten conflicting answers on how to handle the situation too. Most say to use Schedule E, but as you have said (which I agree with), this is not real estate or any activity related to rental real estate, so using Schedule E is not correct. This personal property I am renting (5-year depreciable property), costs well over $100K to purchase, so it is essential that I am able to depreciate it. Since it doesn't fall under Schedule E or Schedule C, I assume it must go on Schedule 1 (Other Income). It makes me a little nervous that I am on my own to do this, and it appears that no software is unable to generate the forms I need in this situation and input the deductions on line 24b of Schedule 1. I know the amount that is allowed for the depreciation deductions, but if I don't have the correct forms (4562 and 8582) submitted to substantiate the amount, it is going to lead to an audit. Since the software is unable to accommodate this situation and I am on my own, I suppose I have no choice but to file a paper return.
