Listed Property

[Gretel]

The latest EA Journal says that there is no deduction for listed property if used less than 50% for business, which threw me totally off.

So back to research, but all I can find is that deductions are limited (mainly depreciation) but still allowed. Even if asset is used less than 50% for biz (with all required record keeping) legitimate expenses are prorated and allowed. Am I off?

[ChEAr$]

Depreciation of listed property

The latest EA Journal says that there is no deduction for listed property if used less than 50% for business, which threw me totally off.

So back to research, but all I can find is that deductions are limited (mainly depreciation) but still allowed. Even if asset is used less than 50% for biz (with all required record keeping) legitimate expenses are prorated and allowed. Am I off?

I don't think you're "off", Liebchen. I just read that paragraph in the EA Journal and it seems at odds with what is said in the Taxbook, page 10.-10, second column, example #1, wherein "she must depreciate ..using straight line method ....."

[solomon]

§280F - the horses mouth.

(b) Limitation where business use of listed property not greater than 50 percent

(1) Depreciation

If any listed property is not predominantly used in a qualified business use for any taxable year, the deduction allowed under section 168 with respect to such property for such taxable year and any subsequent taxable year shall be determined under section 168 (g) (relating to alternative depreciation system).

[Gretel]

Yes, exactly, only depreciation is affected. This is what I thought but also that anything anyone says in the EA Journal is correct. I read this as my good night read and thought I have done things wrong all along.