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taxmap/pubs/p225-033.htm#TXMP27426a2c Additional Rules for Listed Property(p44)

Additional Rules for Listed Property

Listed property includes cars and other property used for transportation, property used for entertainment, and certain computers and cellular phones.

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

• Deduction for employees.
• Business-use requirement.
• Passenger automobile limits and rules.

taxmap/pubs/p225-033.htm#TXMP547ef532 What Is Listed Property?(p44)

Listed Property

Listed property is any of the following.

• Passenger automobiles weighing 6,000 pounds or less.
• Any other property used for transportation, unless it is an excepted vehicle.
• Property generally used for entertainment, recreation, or amusement.
• Computers and related peripheral equipment unless used only at a regular business establishment and owned or leased by the person operating the establishment.
• Cellular telephones (or similar telecommunication equipment).

taxmap/pubs/p225-033.htm#TXMP307f1f8a Passenger automobiles.(p44)

A passenger automobile is any 4-wheeled vehicle made primarily for use 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). It includes any part, component, or other item physically attached to the automobile or usually included in the purchase price of an automobile. Electric passenger automobiles are vehicles produced by an original equipment manufacturer and designed to run primarily on electricity.

A truck or van that is a qualified nonpersonal use vehicle is not considered a passenger automobile. See Qualified nonpersonal use vehicles under Passenger Automobiles in chapter 5 of Publication 946 for the definition of qualified nonpersonal use vehicles.

taxmap/pubs/p225-033.htm#TXMP22532840 Other property used for transportation.(p44)

This includes trucks, buses, boats, airplanes, motorcycles, and other vehicles used for transporting persons or goods.

taxmap/pubs/p225-033.htm#TXMP1f610ee0 Excepted vehicles.(p44)

Other property used for transportation does not include the following vehicles.

• Tractors and other special purpose farm vehicles.
• Bucket trucks (cherry pickers), dump trucks, flatbed trucks, and refrigerated trucks.
• Combines, cranes and derricks, and forklifts.
• Any vehicle designed to carry cargo with a loaded gross vehicle weight of over 14,000 pounds.

For more information, see chapter 5 of Publication 946.

taxmap/pubs/p225-033.htm#TXMP5c06d356 What Is the Business-Use Requirement?(p45)

Business-Use Requirement

You can claim the section 179 deduction for listed property and depreciate listed property using GDS and a declining balance method, if the property meets the business-use requirement. To meet this requirement, listed property must be used predominantly (more than 50% of its total use) for qualified business use. To determine whether the business-use requirement is met, you must allocate the use of any item of listed property used for more than one purpose during the year among its various uses.

taxmap/pubs/p225-033.htm#TXMP43f11ea9 Do the Passenger Automobile Limits Apply?(p45)

Depreciation, Limit

The depreciation deduction (including the section 179 deduction) you can claim for a passenger automobile each year is limited. The passenger automobile limits are the maximum depreciation amounts you can deduct for a passenger automobile. They are based on the date you placed the vehicle in service. See chapter 5 of Publication 946 for tables that show the maximum depreciation deduction for passenger automobiles. Also see the Instructions for 
Form 4562.

For information about deducting expenses for the business use of your passenger automobile, see chapter 4 in Publication 463.

taxmap/pubs/p225-033.htm#TXMP45d799ec Deductions for passenger automobiles acquired in a trade-in.(p45)

Special rules apply in figuring the depreciation for a passenger automobile received in a like-kind exchange or involuntary conversion. See chapter 5 of Publication 946 and section 1.168(i)-6T(d)(3) of the regulations.

Previous Page:  Publication 225 - Farmer's Tax Guide - Figuring Depreciation Under MACRS Next Page:  Publication 225 - Farmer's Tax Guide - Depletion Use   to find additional occurrences of topic items.