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Personal-Use Property

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Glossary  -> Personal-Use Property

Personal-Use Property

Income Tax Act s. 40(2)(g)(iii), s. 46, s. 54

Personal-use property includes cars, boats, furniture, cottages and other property purchased for personal use, as well as stamps, coins, works of art, and other personal use property that is considered listed personal property.  Note that capital gains from cottages can be eligible for the principal residence exemption.

If you have personal-use property 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 personal-use property purchased for less than $1,000 is $1,000.  The deemed proceeds from sales of personal use property sold for less than $1,000 are deemed to be $1,000.  If you have personal-use property which you purchased for $800, and you sell the property for $1,300, your capital gain will be $300 ($1,300 less the deemed cost of $1,000).  If you sell the property at a loss, generally the loss cannot be claimed, unless it is listed personal property.

Capital gains from personal-use property are reported on Schedule 3 of the personal income tax return, and Schedule 6 of the corporate income tax return.

TaxTips.ca Resources

     Tax Implications of Owning a Cottage or Second Home

     Principal Residence Exemption

Canada Revenue Agency (CRA) Resources

     Personal Use Property

     T4012 Corporate Income Tax Guide - corporate tax treatment of personal use property

Revised: February 08, 2017

 

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