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Property Type

Article ID: 33833 Email Print
Question
Property Type

Answer

Property Type includes:

• Tangible Property such as buildings, machinery, vehicles, furniture, and equipment; and


• Intangible Property such as patents, copyrights, computer software, and goodwill.


Section 179 Property

Sections 179 property is property that you acquire by purchase for use in the active conduct of your trade or business, and is one of the following: tangible personal property, single purpose agricultural (livestock) or horticultural structures, store facilities (except buildings and their structural components) used in connection with distributing petroleum or any primary product of petroleum, off-the-shelf computer software, or other tangible property (except buildings and their structural components) used as:

• An integral part of manufacturing, production, or extraction or of furnishing transportation, communications, electricity, gas, water, or sewage disposal services;


• A research facility used in connection with any of the activities above; or


• A facility used in connection with any of the activities above for the bulk storage of fungible commodities.


Section 179 property does not include the following:

• Property held for investment (section 212 property)


• Property used mainly outside the United States (except for property described in section 168(g)(4))


• Property used mainly to furnish lodging or in connection with the furnishing of lodging (except in section 50(b)(2))


• Property used by a tax-exempt organization (other than a section 521 farmers' cooperative) unless the property is used mainly in a taxable unrelated trade or business


• Property used by governmental unit or foreign person or entity (except for property used under a lease with a term of less than 6 months)


• Air conditioning or heating units.


Listed Property

Listed property generally includes:

• Passenger automobiles weighing 6,000 pounds or less.


• Any other property used for transportation if the nature of the property lends itself to personal use, such as motorcycles, pick-up trucks, sport utility vehicles, etc.


• Any property used for entertainment or recreational purposes (such as photographic, phonographic, communication, and video recording equipment).


• Cellular telephones (or other similar telecommunications equipment).


• Computers or peripheral equipment.


Exception: Listed property does not include:

1.Photographic, phonographic, communication, or video equipment used exclusively in a taxpayers trade or business or at the taxpayers regular business establishment;


2.Any computer or peripheral equipment used exclusively at a regular business establishment and owned or leased by the person operating the establishment;


3.An ambulance, hearse, or vehicle used for transporting persons or property for compensation or hire; or


4.Any truck or van placed in service after July 6, 2003 that is a qualified non-personal use vehicle.


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Article Details
Views: 438 Created on: Jun 15, 2013
Date updated: Sep 17, 2015

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