Listed property is a type of business asset that receives special tax treatment because it can be used for both personal and business purposes. The IRS requires additional recordkeeping and documentation when you claim business deductions for listed property.
Listed property generally includes:
- Passenger automobiles
- Other transportation vehicles that aren't considered excepted vehicles
- Property commonly used for entertainment, recreation, or amusement, including:
- Cameras and photographic equipment
- Audio recording equipment
- Communication devices
- Video recording equipment
To claim depreciation or other business tax benefits for listed property, you may need to show how the property was used for business versus personal purposes.
Passenger Automobiles
For listed property rules, a passenger automobile is generally a four-wheeled vehicle that:
- Is designed primarily for use on public roads and highways, and
- Has an unloaded gross vehicle weight rating (GVWR) of 6,000 pounds or less
The term includes accessories, components, and other items that are attached to the vehicle when purchased or are normally included in the purchase price.
The following vehicles are not treated as passenger automobiles for these purposes:
- Ambulances, hearses, or combination ambulance-hearses used directly in a trade or business
- Vehicles used directly in the business of transporting people or property for pay
- Trucks or vans that qualify as nonpersonal-use vehicles
What Are Excepted Vehicles?
Certain vehicles are excluded from the listed property rules because they are designed primarily for business use and are not likely to be used personally. These vehicles are known as qualified nonpersonal-use vehicles.
Examples include:
- Clearly marked police vehicles
- Clearly marked fire vehicles
- Unmarked law enforcement vehicles when official use is authorized
- Ambulances and hearses used for their intended purpose
- Cargo vehicles with a loaded gross vehicle weight over 14,000 pounds
- Bucket trucks (cherry pickers)
- Cement mixers
- Dump trucks, including garbage trucks
- Flatbed trucks
- Refrigerated trucks
- Combines
- Cranes and derricks
- Forklifts
- Delivery trucks with seating only for the driver, or for the driver and a folding jump seat
- Qualified moving vans
- Qualified specialized utility repair trucks
- School buses used to transport students and school employees
- Passenger buses with seating capacity for at least 20 passengers
- Tractors and other special-purpose farm vehicles