@Philip C.
Four very different issues are at play here. Which is why RE taxation is so confusing for y'all and so profitable for us accountants. :)
Warning: I'm taking some liberties with the terminology, for the sake of clarity.
1. Active business v. Passive renting/landlording. This issue is about which schedule to use (Sch C or Sch E) and whether the income is subject to the self-employment tax, aka Social Security and Medicare tax. The answer for a rental property in 99% of the cases is the latter: passive renting and no SE tax.
2. Trade or Business v. Investment activity. This issue is about deductibility of general business expenses and the new 20% deduction on net income. The answer for a rental property in 99% of the cases is the former: Trade or Business, meaning all deductions are available.
3. Active participation in the activity. This issue is about your ability to deduct your rental losses, including depreciation, against your "normal" income, such as W2 salary. The answer is probably yes in your case, but I would need more information.
4. Passive activity v. Non-passive activity, aka Real Estate Professional status. This issue is about your ability to immediately deduct all your rental losses, regardless of your income level. The answer requires additional information from you, but it is probably the former: Passive activity, meaning that deductions for your losses can be limited if either your losses are too high or your income is too high.
Finally, on the appliances - yes, you can depreciate or even write them off completely the current value of the appliances. The key is: current value, not their original price paid by the previous owner.
