In taxation, listed property refers to assets such as automobiles, computers, and cellular phones that are subject to a 50% business use test. Depreciation methods for these assets vary based on their usage for business purposes.
Luxury automobiles are four-wheeled vehicles used on public streets and highways with an unloaded gross weight of 6,000 pounds or less. Depreciation deductions for such vehicles are severely limited for income tax purposes.
The Recapture Rule requires the repayment of tax benefits like depreciation and investment tax credits claimed earlier if specific conditions are not met in subsequent years.
