Listed personal property (LPP) losses

You have a listed personal property (LPP) loss if, in a particular year, your losses from dispositions of LPP are more than your gains from such dispositions. Applying this type of loss is different from applying other capital losses because of the following reasons:

If you have an LPP loss in 2023, you can use the loss to reduce gains from dispositions of LPP you had in any of the 3 years before 2023 or the 7 years after.

Because LPP is a type of personal-use property, the capital gain or loss on the sale of the LPP item is calculated the same way as for personal-use property. For more information, see Personal-use property.

If your 2023 gains from dispositions of LPP are more than your losses from such dispositions, you can use unapplied LPP losses from 2016 and later years to reduce your 2023 gains. If you want to do this, do not enter these losses on line 25300 of your income tax and benefit return. Instead, subtract the unapplied LPP losses of previous years from your 2023 LPP gains. You should only complete the "Listed personal property" area of Schedule 3 if, after doing these calculations, you still have a net LPP gain in 2023.

If your 2023 losses from dispositions of LPP are more than your 2023 gains from such dispositions, the difference represents your LPP loss for the year. Keep a record of your LPP losses that have not expired so you can apply these losses against LPP gains in other years. An unapplied LPP loss expires when you do not use it by the end of the seventh year after you incurred it.

To carry back your 2023 LPP losses to reduce your LPP net gains from 2020, 2021, and 2022, complete Form T1A, Request for Loss Carryback, and include it with your 2023 income tax and benefit return. Do not file an amended return for the year to which you want to apply the loss.

Completing your Schedule 3

Enter your gains arising from the disposition of listed personal property in the LPP area (section 8) of the Schedule 3. Enter the amount of LPP losses from other years and subtract it from your 2023 LPP gains. Enter the net gain only on
line 15900.

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