Types of Depreciable Property

In general, depreciation is allowed on tangible and intangible property with a limited useful life of more than one year that is used in a trade or business or held for the production of income.

There are two basic property types:

  • Personal property, which under IRS Code, includes all depreciable property other than real property.
  • Real property which includes buildings and their structural components.

Additionally, property can be either listed or not listed. Most property is not listed, but there are specific rules and limitations placed on listed property.

With regards to listed property, IRS Code Section 280 (F) details that both personal property, such as airplanes, boats and cellular phones, and real property, such as entertainment or recreational property like a vacation home can be listed property. The depreciation deduction for listed property is limited under IRS Code.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.