What is listed property?

Listed property is an asset that can be used for both business and personal reasons. If you own any listed property, keep detailed records to prove its business use. This will help prevent any tax issues or abuse accusations.

Listed property is any of the following:

• Passenger automobiles: Any four-wheeled vehicle used primarily on public streets, roads, and highways and rated at 6,000 pounds or less of unloaded gross vehicle weight (6,000 pounds or less of gross vehicle weight for trucks and vans). A truck or van that is a qualified nonpersonal use vehicle (used minimally for personal purposes) is not considered a passenger automobile.
• Business aircrafts
• Transport vehicles: Any other property used for transportation, unless it's an excepted (non-personal) vehicle: trucks, buses, boats, airplanes, motorcycles, and any other vehicles used to transport persons or goods.
• Entertainment, recreation, or amusement assets: Property including photographic, phonographic, communication, and video recording equipment.

Deductions for listed property (other than certain leased property) are subject to the following rules and limitations.

• Deduction for employees: While most employees can no longer deduct depreciation for work-related assets due to the Tax Cuts and Jobs Act (TCJA), certain exceptions apply. Since the TCJA is set to expire at the end of the 2025 tax year, these deductions may return in the future. If this deduction does return and the use of the property isn't for your employer's convenience or isn't required as a condition of your employment, you can't deduct depreciation or rent expenses for your use of the property as an employee.
• Business-use requirement: If the property is not used predominantly (more than 50%) for qualified business use, you cannot claim the section 179 deduction or a special depreciation allowance. For a business aircraft, there is a 25% test that must be met.
• Passenger automobile limits and rules: Annual limits apply to depreciation deductions (including section 179 deductions and any special depreciation allowance) for certain passenger automobiles.

Note: Not all assets are treated the same for tax purposes. Assets not considered listed property largely fall under the more general category of capital assets.