Listed Property
Quick definition
An IRS category of assets, including passenger vehicles, that carries stricter substantiation and business-use recordkeeping rules.
Listed property is an IRS classification for assets that lend themselves to personal use, including passenger vehicles. Listed property carries heightened recordkeeping requirements compared with ordinary business assets.
Why vehicles are singled out
Because a car is easy to use personally, the IRS wants clear proof of how much you drove it for business. That is your business-use percentage, and it has to be backed by records, not estimates.
The practical effect
Listed property rules are why substantiation matters so much for vehicles, and why depreciation on a car is reported in Part V of Form 4562. Keep a contemporaneous log.
Related terms
Substantiation
The IRS requirement to support a deduction with adequate records, including the date, destination, business purpose, and miles for each trip.
Business-Use Percentage
Business miles divided by total miles. Used to scale the actual-expenses deduction.
Form 4562
The IRS form used to report depreciation, Section 179 expensing, and bonus depreciation for business assets, including vehicles.
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