What is required of property used in business?

Property used in business must be utilized regularly for business activities. This regular use ensures that the property qualifies as a business asset, which can have significant implications for tax deductions and accounting practices. The IRS recognizes that in order for property to be considered a business asset, it must be actively involved in producing revenue or supporting business operations.

Regular use signifies that the property is integral to the business's daily functioning and is not merely held for investment or speculative purposes. If business property is not used frequently, it may not meet the necessary criteria to be classified as such, potentially affecting how expenses related to the property can be deducted.

The other options do not accurately reflect the requirements for business property. For instance, the notion that the property must be rented or leased does not apply universally, as owned property can also be classified as a business asset. Similarly, while property can appreciate in value, this is not a requisite characteristic for it to be classified as a business asset. Lastly, while having a long lifespan may be advantageous, it is not a requirement for property to qualify for business use. Thus, the essential factor is the regular use of the property in business activities.