In short
Listed property, such as passenger automobiles, is property that lends itself to personal use. If business use is 50% or less, it must be depreciated using the straight-line alternative system, with no bonus depreciation or section 179 expensing.
Key takeaways
- If business use later falls to 50% or less, excess depreciation previously taken is recaptured as income.
- Depreciation on passenger autos is also capped at annual dollar limits.
- Business use must be supported by records such as mileage logs.
Where it's tested
REG: Property Transactions: Basis & Cost Recovery — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Under the One Big Beautiful Bill Act, which statement about bonus depreciation is correct for qualifying property acquired after January 19, 2025?