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.
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).
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.
This includes trucks, buses, boats, airplanes, motorcycles, and other vehicles used for transporting persons or goods.taxmap/pubs/p225-033.htm#en_us_publink1000218285
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#en_us_publink1000218286
You can claim the section 179 expense 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#en_us_publink1000218287
The depreciation deduction (including the section 179 expense 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#en_us_publink1000218288
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 Regulations section 1.168(i)-6(d)(3).