Asked by Samantha DiJohn on Apr 27, 2024
Verified
Once the more-than-50% business-use test is met for listed property,it does not matter if the business use falls below 50% in subsequent years.
More-Than-50% Business-Use Test
A criterion used for determining whether an asset is used primarily for business, requiring that over 50% of its use is for business to qualify for certain tax deductions.
Listed Property
Assets specified by the IRS that are subject to specific record-keeping and substantiation requirements, such as vehicles and computers used for business.
- Understand the meaning and fiscal consequences of listed property.
Verified Answer
LS
Loren SandersApr 29, 2024
Final Answer :
False
Explanation :
The business use must continue to be more-than-50% each year in order for the listed property to continue to qualify for favorable tax treatment. So, if the business use falls below 50% in subsequent years, the property may no longer qualify as listed property and may be subject to less favorable tax treatment.
Learning Objectives
- Understand the meaning and fiscal consequences of listed property.