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 2024, you can use the loss to reduce gains from dispositions of LPP you had in any of the 3 years before 2024 or the 7 years after.

To carry back your 2024 LPP losses to reduce your LPP net gains from 2021, 2022, and 2023, complete Form T1A, Request for Loss Carryback, and include it with your 2024 income tax and benefit return. Do not file an amended return for the year to which you want to apply the loss.

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.

LPP gains are more than LPP losses

If your 2024 gains from dispositions of LPP are more than your losses from such dispositions, you can use unapplied LPP losses from 2017 and later years to reduce your 2024 gains. To do so, enter your unapplied LPP losses from other years, as applicable, for Period 1 or Period 2, immediately above line 9 in Part 3 of Schedule 3 where it says “Subtract: unapplied LPP losses of other years”.

For 2024, you must report your LPP net gains for Period 1 and Period 2. Apply any LPP losses from other years to reduce your Period 1 and Period 2 net gains.

LPP losses are more than LPP gains

If your 2024 losses from dispositions of LPP are more than your 2024 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 that you can apply these losses against LPP gains in other years.

An unapplied LPP loss expires if you do not use it by the end of the seventh year after you incurred it.

A LPP net loss from one period must be used to reduce an LPP net gain from another period, before carrying it forward to a future year.

Completing your Schedule 3

Report dispositions of listed personal property on line 9 in Part 3 of the Schedule 3.

For dispositions in Period 1, enter the net gain only on line 10698. For dispositions in Period 2, enter the net gain only on line 15900.

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