Listed Property

What is a 'Listed Property'

A specific class of depreciable property that is subject to a special set of tax rules if it is used for business no more than 50% of the time. Listed property includes such items as vehicles, computer equipment and cell phones. Listed-property rules limit the amount of deductions and depreciation that can be taken if the asset isn't predominantly used in a business or trade.


According to the IRS, listed property includes automobiles weighing less than 6,000 pounds, property used for transportation purposes, properties used for transportation and computers.





BREAKING DOWN 'Listed Property'

If listed property is used primarily for business reasons, then it is subject to the statutory percentage depreciation method. Listed property that is used for business only half the time at most is depreciated under the straight-line method. Cars used solely to carry passengers are also subject to additional limitations on their depreciation.

RELATED TERMS
  1. Depreciable Property

    Any type of asset that is eligible for depreciation treatment. ...
  2. Unit of Production Method

    A depreciation procedure used for property that is not in continuous ...
  3. Section 1250

    A section of the United States Internal Revenue Service Code ...
  4. Form 4562: Depreciation and Amortization

    A tax form distributed by the Internal Revenue Service (IRS) ...
  5. Section 1231 Property

    A tax term relating to depreciable business property that has ...
  6. Form 4797

    A tax form distributed by the Internal Revenue Service (IRS) ...
Related Articles
  1. Personal Finance

    How Does Depreciation Reduce My Tax Bill?

    How the depreciation tax rule can assist real estate investors.
  2. Managing Wealth

    How Rental Property Depreciation Works

    It's a bit tricky, but a valuable tool to make your investment pay off.
  3. Personal Finance

    Filling Out Form 4562: Investopedia Explains

    Step-by-step, how to fill out the depreciation and amortization form for your business tax return.
  4. Trading

    Use Real Estate To Put Off Tax Bills

    Find out how you can build wealth and reduce your taxes.
  5. Personal Finance

    What You Should Know About Real Estate Valuation

    Anyone involved in a real transaction can benefit from gaining a basic understanding of the different methods of real estate valuation.
  6. Personal Finance

    Your Property Tax Assessment: What Does It Mean?

    The amount of a property tax bill is based on the property’s value, the exemptions it qualifies for, its use and the local property tax rate.
  7. Personal Finance

    Sell Your Rental Property For A Profit

    Being a landlord can be taxing, especially when you want to sell. Find out how to reduce your burden.
  8. Investing

    An Introduction To Depreciation

    Companies make choices and assumptions in calculating depreciation, and you need to know how these affect the bottom line.
  9. Personal Finance

    Getting U.S. Tax Deductions On Foreign Real Estate

    If your home or second home is not in the United States, you can still get U.S. tax deductions. How many and what kind depends on whether you also rent it.
  10. Investing

    How Property Rights Affect Economies

    Property rights are laws governments create that enable investors to control, benefit from, and transfer property.
RELATED FAQS
  1. Do I have to pay capital gains tax on commercial property?

    I am retired and living on a fixed income. When selling a piece of commercial property, do I have to report and pay capital ... Read Answer >>
  2. Can I claim depreciation of a rental property I co-own with my brother, after he ...

    I am a co-owner of a rental property with my brother. For the first 27.5 years he made all payments, reported the rental ... Read Answer >>
  3. Can real estate be depreciated?

    Decrease the amount of taxable income on your income-producing real estate by depreciating the asset on your federal income ... Read Answer >>
  4. What are some examples of the main types of capital expenditures (CAPEX)?

    Learn about different expenses with acquiring assets that are considered capital expenditures and should be depreciated over ... Read Answer >>
  5. Is depreciation only used for tangible assets?

    Learn if tangible assets can be depreciated, as well as what other assets are eligible for depreciation so you can account ... Read Answer >>
  6. What is the tax impact of calculating depreciation?

    Understand the tax implications of a company's depreciation. Learn how differences in accounting methods change the amount ... Read Answer >>
Trading Center