Listed Property Listed property includes property used for transportation orentertainment and certain computers and cellular phones. There areadditional rules and recordkeeping requirements you must follow whendepreciating listed property. Listed Property Defined Listed property is any of the following. Any passenger automobile (defined later). Any other vehicle used for transportation. Any property of a type generally used for entertainment,recreation, or amusement. Any computer and related peripheral equipment unlessit is used only at a regular business establishment and owned orleased by the person operating the establishment. Any cellular telephone (or similar telecommunicationequipment). Other vehicles used for transportation.This includes trucks, buses, boats, airplanes, motorcycles, andother vehicles used for transporting persons or goods. Vehicles that are not listed property.The following vehicles, because of their design, are unlikely to beused very often for personal purposes. They are not listedproperty. Tractors and other special purpose farm vehicles. Bucket trucks (cherry pickers), dump trucks, flatbed trucks,and refrigerated trucks. Combines, cranes and derricks, and forklifts. Passenger buses with a capacity of at least 20 passengersthat are used as passenger buses. Predominant Use Test If you do not use listed property predominantly (more than 50%) ina qualified business use, you cannot take a section 179 deduction forthe property and you must depreciate the property using ADS (straightline method) over the ADS recovery period. Listed property meets the predominant use test for any year if itsbusiness use is more than 50% of its total use. You must allocate theuse of any item of listed property used for more than one purposeduring the year among its various uses. You cannot use the percentageof investment use of listed property as part of the percentage ofqualified business use to meet the predominant use test. However, youdo use the combined total of business and investment use to figureyour depreciation deduction for the property. TaxTip: Property does not stop being predominantly used in a qualifiedbusiness use because of a transfer at death. Special Rules for Passenger Automobiles For passenger automobiles, the total depreciation deduction(including the section 179 deduction) you can claim is limited. Passenger automobile defined.A passenger automobile is any four-wheeled vehicle made primarilyfor use on public streets, roads, and highways and rated at 6,000pounds or less of unloaded gross vehicle weight (6,000 pounds or lessof gross vehicle weight for trucks and vans). It includes any part,component, or other item physically attached to the automobile orusually included in the purchase price of an automobile. Maximum deductions for 1999.Determine the maximum depreciation deduction (including section179) you can claim for a passenger automobile based on the date youplace it in service. The maximum deductions for 1999, based on theyear the automobile is placed in service, are shown in the followingtable. Maximum Depreciation Deduction for Passenger Automobiles Year PlacedIn Service 1stYear 2ndYear 3rdYear 4th Year andLater 1999 $3,060 $5,000 $2,950 $1,775 1998 5,000 2,950 1,775 1997 3,050 1,775 1996 1,775 1995 1,775 1994 1,675 Pre-1994 1,675 You must reduce these limits further if your business/investmentuse is less than 100%. Exceptions for clean-fuel vehicles.There are two exceptions to the depreciation limits for passengerautomobiles. These exceptions are effective after August 5, 1997, forautomobiles that run on clean fuel. The first exception is a higher depreciation deductionfor clean-fuel vehicles. The maximum deductions for 1999, based on theyear the clean-fuel vehicle is placed in service, are shown in thefollowing table. Maximum Depreciation Deduction for Clean-Fuel Vehicles Year Placedin Service 1stYear 2ndYear 3rdYear 4th Year andLater 1999 $9,280 $14,900 $8,950 $5,325 1998 15,000 8,950 5,425 1997 9,050 5,425 The second exception is for any costs you pay toretrofit parts and components to modify an automobile to run on cleanfuel. These costs are not subject to the limits ondepreciation for automobiles. Only the cost of the automobile,excluding this modification, is subject to the limit. For more information on clean-fuel vehicles, see chapter 15 inPublication 535,Business Expenses. Fully depreciated automobile.If you have fully depreciated a car you are still using in yourbusiness, you can continue to claim your other operating expenses forthe business use of your car. Continue to keep records, as explainednext. More information.For more information about deducting expenses for the business useof your passenger automobile, see chapter 4 in Publication 463. What Records Must Be Kept Files: You cannot take any depreciation or section 179 deduction for theuse of listed property (including passenger automobiles) unless youcan prove business and investment use with adequate records orsufficient evidence to support your own statements. Adequate records.To meet the adequate records requirement, you must maintain anaccount book, diary, log, statement of expense, trip sheet, or similarrecord or other documentary evidence that, together with the receipt,is sufficient to establish each element of an expenditure or use. Youdo not have to record information in an account book, diary, orsimilar record if the information is already shown on the receipt.However, your records should back up your receipts in an orderlymanner. How long to keep records.For listed property, you must keep records for as long as anyexcess depreciation can be recaptured (included in income). Recapturecan occur in any tax year of the ADS recovery period. For more information on records, see chapter 4 in Publication 946.