Which type of property is NOT considered listed property?

Listed property refers to items that are subject to special rules regarding deductions and allowances because of their potential for personal use aside from business use. This classification is important for tax purposes as it affects how and when deductions can be claimed.

Passenger cars, computers, and property used primarily for entertainment are all classified as listed property due to their dual-use nature—being able to serve both personal and business purposes. This means that for these types of property, taxpayers must keep detailed records to justify the business versus personal use when claiming deductions.

On the other hand, equipment used for manufacturing does not fall under the classification of listed property. This type of property is generally used exclusively for business purposes and is necessary for the production of goods. Since it does not have the same significant potential for personal use compared to the other categories, the tax rules applied to manufacturing equipment differ from those applied to listed property. Consequently, it is not restricted by the same stringent reporting and documentation requirements associated with listed property.

Therefore, the nature of the use of manufacturing equipment—exclusively business rather than mixed-use—defines it as not being classified as listed property.