Personal-use property losses
When you dispose of personal-use property that has an ACB or proceeds of disposition of more than $1,000, you may have a capital gain or loss. You must report any capital gain from disposing of personal-use property.
However, if you have a capital loss, you usually cannot deduct that loss when you calculate your income for the year. In addition, you cannot use the loss to decrease capital gains on other personal-use property. This is because if a property depreciates through personal use, the resulting loss on its disposition is a personal expense.
Loss restrictions do not apply:
- if you disposed of personal-use property that is listed personal property
- to a bad debt owed to you from the sale of a personal-use property to a person you deal at arm's length with
For information on gains and losses from listed personal property such as paintings, rare books, coins and stamps, see Listed personal property (LPP).
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Example
You sold the following personal-use properties in March 2024:
Information required to calculate your capital gains or losses Property sold Proceeds of disposition Adjusted cost base Outlays and expenses China cabinet $900 $500 $0 Boat $1,200 $850 $50 Personal computer $1,500 $3,200 $30 You calculate the capital gain or loss for each transaction as follows:
Proceeds of disposition (whichever is more: selling price or $1,000, see Personal-use property) minus ACB [(whichever is more: cost or $1,000) plus outlays and expenses, see Personal-use property] = Capital gain or loss.
China cabinet: $1,000 - $1,000 $ = $0.
For the proceeds of disposition and the ACB, you use $1,000, as both were less than that amount. As a result, there is no capital gain or loss for this transaction and you do not have to report it on Schedule 3.Boat: $1,200 - ($1,000 + $50) = $150.
Because the ACB of the boat is less than $1,000, it is considered to be $1,000. You report $150 as a capital gain.Personal computer: $1,500 - ($3,200 + $30) = ($1,730).
Your capital loss is not deductible. You also cannot use the loss to decrease any other capital gains realized in the year.
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