Listed property is a depreciable type of asset used for business purposes no more than half the time, subject to different depreciation and tax schedules. Revenue agencies provide guidelines for determining if an asset is listed property, including vehicles, cell phones, and computers used intermittently.
Listed property is a depreciable class or type of property that is used for business purposes no more than half the time. Almost any type of business asset can be considered listed property if it meets this basic criteria. Some examples of assets that may qualify as this type of depreciable property include vehicles, cell phones, or desktop and laptop computers.
The primary reason for drawing a distinction between listed property and other depreciable assets is that there are limits on the amount of depreciation a business can claim on property that is not considered predominant or central to the operation of the business. Since the assets are not in active use for more than fifty percent of the company’s operating time during the fiscal year, they are subject to a different depreciation schedule and a different tax schedule. The exact formulas for calculating the depreciation rate for listed properties will vary from one revenue agency to the next, as will the means of determining the amount of tax due for the current tax period.
Qualifying an asset as a listed property is not a matter of identifying specific assets and stating that those assets are always part of this particular class of depreciable property. Most revenue agencies provide specific guidelines for determining 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 after this fifty percent threshold should be considered listed for tax purposes.
There are several different types of assets that can be considered listed property. Passenger vehicles used intermittently to transport company personnel or visitors to and from an airport would be included in this class. Property used for entertainment or recreation at events such as company-sponsored employee dinners will also be considered listed property. Computers or cell phones that are only used by employees when they are away from their primary workplace are also often considered on the list and not as living quarters.
Tax agencies generally provide specific guidelines for determining whether a given asset can properly be classified as listed property. While those guidelines can vary from nation to nation, most provide formulas for determining whether the asset is in fact used for business purposes for 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 like any typical business asset when calculating the depreciation rate and taxes due for that particular tax year.
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