Which of the following properties is subject to depreciation restrictions?

Listed property refers to specific types of items that the IRS has categorized as being subject to special rules regarding depreciation. This category includes items that are often used for both personal and business purposes, such as cars, boats, and certain types of equipment. The rationale behind these restrictions is to prevent taxpayers from claiming excess depreciation on assets that may not be used entirely for business purposes.

For example, if a car is used for both business and personal driving, the depreciation must be calculated based on the percentage of time it is used for business. Furthermore, the IRS imposes limitations on the amount of depreciation that can be claimed in any given year for listed property, especially in the early years of the property’s life, to mitigate potential abuse of depreciation deductions.

In contrast, other properties mentioned, such as personal-use property, residential rental property, and intangible property, do not have the same stringent depreciation restrictions. Personal-use property is not subject to depreciation since it is not used for business purposes. Residential rental property does qualify for depreciation but does not have the same type of restrictions placed upon it as listed property. Similarly, intangible property typically does not fall under depreciation rules but instead may be amortized over a specified period.

This distinction makes listed property unique in its treatment