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Depreciation - Listed Property

Listed Property generally refers to property that could be used for personal and business purposes. For listed property, the business use must be over 50% for the taxpayer to claim the Section 179 expense or the accelerated depreciation, MACRS.

In TaxAct, the business-use percentage dictates whether or not property is considered listed property:

  • 100% business use will calculate as not listed. 
  • Anything less than 100% will show up as listed property. 
  • All cars and light truck asset types are treated as listed, also.

Per the IRS Instructions for Form 4562 Depreciation and Amortization (Including Information on Listed Property):

Page 2: Listed Property

Listed property generally includes the following:

  • Passenger automobiles weighing 6,000 pounds or less. See Limits for passenger automobiles, later.
  • Any other property used for transportation if the nature of the property lends itself to personal use, such as motorcycles, pick-up trucks, sport utility vehicles, etc.
  • Any property used for entertainment or recreational purposes (such as photographic, phonographic, communication and video recording equipment).

Exceptions. Listed property does not include:

  1. Photographic, phonographic, communication, or video equipment used exclusively in a taxpayer's trade or business or at the taxpayer's regular business establishment;
  2. Any computer or peripheral equipment used exclusively at a regular business establishment and owned or leased by the person operating the establishment;
  3. An ambulance, hearse, or vehicle used for transporting persons or property for compensation or hire; or
  4. Any truck or van placed in service after July 6, 2003, that is a qualified nonpersonal use vehicle.

For purposes of the exceptions above, a portion of the taxpayer's home is treated as a regular business establishment only if that portion meets the requirements for deducting expenses attributable to the business use of a home. However, for any property listed in (1) above, the regular business establishment of an employee is his or her employer's regular business establishment.

Please also refer to IRS Publication 946 How to Depreciate Property.

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