First, is this a
rental use ("bed for client") or is the bed not indicative of a business like a B&B or other rental property? If this is a rental property, then whatever you report will be on Schedule E (Rental Property). Otherwise this will go on Schedule C like a normal home business. If, for example, the bed is for a therapeutic massage or chiropractic business, then this is a Schedule C business.
Second, te IRS says that you must capitalize (depreciate) business assets, like buildings, machinery, furniture, trucks, patents, and
franchise rights. Assets are items that you use in your business that last more than a year.
Third, the IRS permits businesses to expense certain items that otherwise would have been required to be depreciated. If you will follow all the way through the interviews for Schedule C and Schedule E (whichever applies), you will see TurboTax asking you about whether you spent $2,500 or more on one or more items, and whether or not you want to treat them as expenses rather than depreciate them. Step through the questionnaire, and then go back and enter any assets that qualify as expenses rather than depreciation under Other Expenses.
