1. Listed property is defined as tangible property that has mixed use, part business and part personal use. Sec. 280F(b) provides that any listed property which is not used more than 50% of the time in a qualified trade or business does not qualify for MACRS depreciation. Instead, the taxpayer must use the alternative depreciation system (ADS).
2. Bonus depcreciation is not allowed for listed property that is used more than 50% of the time in a qualified trade or business. This is because the the first year deduction is limited to the appropriate ADS amount so bonus depreciation under Section 179 is prohibited. ADS requires straight-line recovery over the class life (and not the MACRS life) of the property.