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Listed Property (Depreciation and Deductible Expense)

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Definition:

Listed property is property that is used by employees in a business which can also be used for personal purposes. The types of listed property include:

  • Passenger automobiles weighing 6,000 pounds or less
  • Other property used for transportation, like a motorcycle or boat
  • Property generally used for entertainment, recreation, or amusement, including digital cameras and video recording equipment
  • Computers and related peripherals
As of January 1, 2010, cell phones and other similar personal telecommunications devices are no longer considered "listed property."

Predominant Use Test
Because listed property can be used for personal purposes, if you wish to depreciate this property or deduct expenses for use of the property, you must substantiate the business use of the property. The predominant use test says that the asset must be used predominantly (more than 50%) for business purposes. If more than 50 percent of the total use of the asset is related to your trade or business, the asset is considered a business asset and the business use of that asset can be depreciated. If the asset meets the "predominant use test," expenses related to use of the asset related to business use can be deducted.

Depreciation, Deductions, and Listed Property
Listed property which does not meet the predominant use test is not eligible for Section 179 depreciation or other accelerated depreciation methods. Expenses for listed property which does not meet the predominant use test are limited.

For More Information from the IRS
For more information on listed property and depreciation, see IRS Publication 946: How to Depreciate Property.

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