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J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return by J.K. Lasser Institute

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42.10 Computers and Other Listed Property

“Listed property” is a term applied to certain equipment that may be used for personal and business purposes. For such property, the law allows bonus depreciation (42.21), first-year expensing (42.3) or accelerated MACRS (42.5) deductions only if business use exceeds 50%. For business use of 50% or less, you must use ADS straight-line depreciation (42.9). Deductions for listed property are claimed on Part V of Form 4562. If the more-than-50%-business-use test is met in the first year and first-year expensing or accelerated MACRS is claimed, but business use of listed property falls to 50% or less during the ADS straight-line recovery period (42.9), you must “recapture” first-year expensing, bonus depreciation and accelerated MACRS deductions; see Example 2 below.

What is “listed property”?

Listed property includes passenger autos and other transportation vehicles (43.4), computers and peripheral equipment, boats, airplanes, and any photographic, sound, or video recording equipment that could be used for entertainment or recreational purposes. However, exceptions remove some items from the listed property category for many businesses. Listed property does not include (1) any computer or peripheral equipment that you own or lease that is used exclusively at a regular business establishment, and (2) photographic, phonographic, communications, or video equipment used exclusively and regularly in your business or regular business establishment. ...

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