Glossary -> Listed Personal Property
Listed Personal Property
Income Tax Act s. 3(b)(ii), s. 41(2) & (3), s. 54, s. 152(6)(b)
Listed personal property (LPP) is a type of personal-use property which usually increases in value over time, including stamps, coins, works of art, jewellery, and rare books, folios or manuscripts. Capital cost allowance cannot be claimed on listed personal property.
If you have LPP which you purchased for more than $1,000, and you sell the property for more than you paid, you will have a capital gain to report on your tax return. The deemed cost of LPP purchased for less than $1,000 is $1,000. If you have LPP which you purchased for $800, and you sell the property for $1,300, your capital gain will be $300. The capital gain from LPP can be reduced by capital losses carried forward, even if they are not from LPP.
If your LPP is certified Canadian cultural property (national treasures) which you have sold or donated to an institution or public authority designated by the Minister of Canadian Heritage, you will not have to report a capital gain.
If you sell the property at a loss, the loss can only be used to reduce the gain from the sale of other LPP. It cannot be used to reduce other capital gains or other income. The loss can be carried back 3 years or carried forward 7 years to be used to reduce the gain from the sale of other LPP in those years.
Capital gains from LPP are reported on Schedule 3 of the personal tax return. If you have a net loss from LPP in the year, Canada Revenue Agency (CRA) indicates that there is no need to report this on the personal tax return. However, make sure you keep track of these losses so that you can apply them to gains from LPP in future years.
For corporations, capital gains and losses from LPP are reported on Schedule 6 of the T2 corporate income tax return. If there is a net loss, this is reported on Schedule 4, Corporation Loss Continuity and Application.
Canada Revenue Agency (CRA) Resources
T4012 Corporate Income Tax Guide - corporate tax treatment of LPP
Revised: January 22, 2017
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