This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- Listed property like vehicles and computers requires strict, contemporaneous written records to substantiate business use.

- To claim accelerated depreciation (MACRS, Section 179), business use must exceed 50% in the year the asset is placed in service.

- If business use is 50% or less, you are restricted to the slower straight-line method under the Alternative Depreciation System (ADS).

- Depreciation recapture is required if business use drops to 50% or less in a subsequent year, treating the excess depreciation taken as ordinary income.

- Annual depreciation on passenger automobiles is capped by the luxury auto limits under IRC §280F, regardless of the vehicle's cost or business-use percentage.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep