Once the more-than-50% business usage test is passed for listed property,it does not matter if the business usage for the property drops to 50% or less during the recovery period.

Question

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If the business usage of listed property drops to 50% or less during the recovery period, the taxpayer may have to recapture some of the depreciation deductions taken in prior years.

Once the More-Than-50% Business Usage Test Is Passed for Listed