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Listed Personal Property

Income Tax Act s. 3(b)(ii), s. 41(2) & (3), s. 54, s. 152(6)(b)

Listed personal property (LPP) includes any:

(a) print, etching, drawing, painting, sculpture, or other similar work of art,

(b) jewellery,

(d) stamp, or

(e) coin

LPP is a type of personal-use property. The difference between LPP and other personal-use property is that LPP tends to increase in value over time.

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 you have capital costs related to the LPP, such as restoration costs, this would increase the adjusted cost base of the 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. See the Canada Revenue Agency article below on selling or donating certified Canadian cultural property.

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. For personal-use property other than LPP, losses cannot be claimed.

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.

TaxTips.ca Resources

Capital Gains and Losses

Deemed Disposition of Property

Canada Revenue Agency (CRA) Resources

Listed Personal Property

Selling or Donating Certified Canadian Cultural Property

T2 Corporation Income Tax Guide (T4012) - T4012 includes corporate tax treatment of LPP

Revised: September 20, 2024