Listed property rules include the following:
I.If listed property is not predominantly used in the taxpayer's business,the business-use portion of the asset cannot be depreciated.
II.If more than 50 percent of the listed property's total use for each year is related to the taxpayer's business,the asset is treated the same as any other mixed-use business asset.
III.When listed property is used 50% or less in the taxpayer's business,the Section 179 expense election does not apply to the asset.
IV.Listed property includes computers,and passenger automobiles.

A)Statements I and III are correct.
B)Only statement IV is correct.
C)Statements II and III are correct.
D)Statements II,III,and IV are correct.
E)Statements I,II,III,and IV are correct.

Question

Listed property rules include the following:
I.If listed property is not predominantly used in the taxpayer's business,the business-use portion of the asset cannot be depreciated.
II.If more than 50 percent of the listed property's total use for each year is related to the taxpayer's business,the asset is treated the same as any other mixed-use business asset.
III.When listed property is used 50% or less in the taxpayer's business,the Section 179 expense election does not apply to the asset.
IV.Listed property includes computers,and passenger automobiles.
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A)Statements I and III are correct.
B)Only statement IV is correct.
C)Statements II and III are correct.
D)Statements II,III,and IV are correct.
E)Statements I,II,III,and IV are correct.

Quizplus · Accepted Answer

Statement II is correct because if more than 50% of the use is business-related, it is treated like any other business asset. Statement III is correct because the Section 179 expense election does not apply if business use is 50% or less. Statement IV is correct because listed property includes computers and passenger automobiles. Statement I is incorrect because the business-use portion can still be depreciated, just not using accelerated methods.

Listed Property Rules Include the Following