What type of properties does Listed Property include?

Listed property includes items that are defined by the IRS as being used for both business and personal purposes, which can lead to certain limitations on deductions. This category encompasses passenger automobiles and properties that are frequently used for entertainment, such as boats and recreational vehicles. The inclusion of both types of property allows for a variety of assets to be categorized as listed property, which is significant when considering how their business use might affect tax deductions.

The other options focus on more narrow definitions. Only passenger autos would exclude the broader range of properties that also fall into this category, while stating all forms of real estate disregards the specific nature of listed property. Similarly, limiting the definition to commercial equipment excludes the consumer-related aspects exemplified by entertainment properties. Thus, the correct choice highlights the comprehensive nature of what constitutes listed property, capturing the essential elements recognized by the IRS.