Listed property is a special classification for assets (examples - cars and computers or tablets) that lend themselves to both personal and business use. The primary objective of the IRS is to ensure that the taxpayer only depreciates the business and investment-use portion of these assets and not the personal-use portion. Which of the following statements is accurate with regards to listed property?

Question 19Select one:

a.

According to the predominant-use test, if listed property does not have more than 60 percent qualified business use, the straight-line depreciation method (MACRS ADS) or Section 179 expensing is allowed

b.

"Qualified business use" is any use of a listed asset in the taxpayer's trade or business that is simply held for the production of income or as an investment

c.

Regarding depreciation recapture of a listed asset, if the asset is fully depreciated then one does not need to be concerned with any recapture of prior depreciation or Section 179 expense deduction taken

d.

According to the predominant-use test, if listed property does not have more than 50 percent qualified business use, the straight-line depreciation method (MACRS ADS) must be used and no Section 179 expensing is allowed

e.

All of the above can be factored into business car and truck expenses.