It is easiest explained by an example:
Let's say you bought the house for $100,000 and you estimate the value of the appliances at that time were $5,000. That means you paid $95,000 for the house, and $5,000 for the appliances.
Now let's say when you converted the house to a rental, the value of your house was $110,000 and the value of the appliances were then $3,500.
You would depreciate $95,000 for the house (the lower of $95,000 and $110,000) over 27.5 years.
You would depreciate $3,500 for the appliances (the lower of $5000 and $3500) over 5 years.
Both are entered in the "asset" section of the rental section. It may be best to depreciate the appliances separately.
In order to enter the appliances, you will allocate the "Fair Market Value" of the house, land, appliances, etc at the lower of Fair Market Value on the date you converted the property and appliances to a rental property, or the adjusted cost basis of the property, whichever is lower.
In order to enter the individual appliances, you will need to make an allocation similar to that suggested by AmeliesUncle in his answer, allocating a value to the house, land, appliances, etc. then enter them in TurboTax as follows:
1. With your TurboTax return open, Choose Federal from the menu on the left, and Income & Expenses from the menu at the top.
2. Scroll down to Rentals, Royalties and Farm
3. Choose Rental Properties and Royalties (Sch E)
4. Answer "Yes" to Did you have any rental or royalty income and expenses in 2019 for property you own?
5. Choose the appropriate answer to the next question related to "Lets see if you're a Real Estate Professional"
6. Follow the prompts related to the description and address of the Rental Property,type, etc and answer the questions related to the Converted Property house and land value.
7. When you get to Review Your house Rental Summary, Choose the Assets/Depreciation to add additional assets such as Property, improvements, appliances, etc. Follow the prompts in this section regarding these assets.
Please note the cost basis of these assets will be determined at the lower of cost for fair market value at the date of conversion and will represent a portion of the value at conversion to a rental.
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