What is a Listed Property?

Malcolm Tatum

Listed property is a class or type of depreciable property that is utilized for business purposes for no more than half of the time. Just about any type of business asset may be considered listed property if it meets this basic criterion. Some examples of assets that may qualify as this type of depreciable property include vehicles, cell phones, or desktop and laptop computers.

Man climbing a rope
Man climbing a rope

The main reason for drawing a distinction between listed property and other depreciable assets is that there are limits on the amount of depreciation that a business can claim on property that is not considered predominant or central to the business operation. Since the assets are not in active use for more than fifty percent of the company’s operating time during the tax year, they are subject to a different depreciation table and a different tax table. The exact formulas for calculating the rate of depreciation on listed property will vary from one revenue agency to the next, as will the means of determining the amount of taxes owed for the current tax period.

Qualifying an asset as listed property is not a matter of identifying specific assets and declaring those assets are always part of this particular class of depreciable property. Most revenue agencies provide specific guidelines to determine if a given asset is directly associated with the core operation of a business for more than half the time. Any asset that cannot be proven to be in use past this fifty percent threshold must be considered listed for tax purposes.

There are a number of different types of assets that may be considered listed property. Passenger vehicles that are used intermittently to transport company personnel or visitors to and from an airport would be included in this class. Properties used for entertainment or recreation at events like company-sponsored dinners for employees would also be considered listed property. Computers or cell phones that are only used by employees when away from their primary place of work are also often considered as listed rather than dwelling property.

Tax agencies usually provide specific guidelines for determining if a given asset can properly be classed as listed property. While those guidelines may vary from one nation to another, most provide formulas for determining if the asset is in fact utilized for business purposes less than half of the current tax period. If the asset is found to be in use for more than half the time, it is considered a predominant asset and is treated as any typical business asset when calculating the rate of depreciation and any taxes due for that particular tax year.

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