Legal Definitions - listed property

Listed property refers to assets that are used for both personal and business purposes. These assets include transportation, entertainment, and other properties specified by regulations.

For example, a car used for both personal and business purposes is considered a listed property. The same goes for a cell phone or computer used for both personal and business purposes.

If the business-related use of a listed property is more than 50% in a tax year, it can be treated the same as any other business asset. However, if the business-related use is less than 50%, the asset is not considered predominantly used in a business, and the ADS straight-line depreciation should be used to count the deduction. This is called the predominant-use test.

To pass the predominant-use test, the user needs to maintain detailed records of the use of the listed property. For example, the mileage of a vehicle used for the business should be recorded, along with the expenditure related to the asset, such as cost of the property, repairs, insurance, and others.

Overall, listed property is important for businesses that use assets for both personal and business purposes. By keeping detailed records and passing the predominant-use test, businesses can ensure that they are properly deducting expenses related to listed property.