G-31-9.1.1 Listed Property Policy

Government employers frequently provide their employees with cellular devices, computers, photographic equipment, video recording, automobiles and other forms of tangible property. This can raise special tax concerns, due to the fact that these items are "Listed Property" under the Internal Revenue Code, and because employees may use them for business as well as personal use. Listed property includes items obtained for use in the business but are designated by the Internal Revenue Code as lending themselves easily to personal use.

To be able to exclude the use of listed property by an employee from taxable income, the employer must have a method to distinguish business from personal use. The amount that represents business use is excludable from income as a working condition fringe benefit. The amount that represents personal use is included in the wages at the fair market value of benefit received.

In general, unless the employer can achieve the business use substantiation requirements of listed property through policies, controls and procedures, the use of listed property will be considered income to the employee.