Quote:Personal-use property
When you sell personal-use property, such as cars and boats, you may have a capital gain or loss. In most cases you do not end up with a capital gain, because this type of property usually does not increase in value over the years. As a result, you may end up with a loss. Although you have to report any gain on the sale of personal-use property, generally you are not allowed to claim a loss. For more information and an example, see Personal-use property losses.
To calculate this gain or loss, follow these rules:
If the adjusted cost base (ACB) of the property is less than $1,000, its ACB is considered to be $1,000.
If the proceeds of disposition are less than $1,000, the proceeds of disposition are considered to be $1,000.
If both the ACB and the proceeds of disposition are $1,000 or less, you do not have a capital gain or a capital loss. Do not report the sale on Schedule 3 when you file your income tax and benefit return.
If the ACB or proceeds of disposition is more than $1,000, you may have a capital gain or loss. Report the sale on your Schedule 3.
Quote:Listed personal property (LPP)
Listed personal property is a type of personal use property. The principal difference between listed personal property (LPP) and other personal use properties is that LPP usually increases in value over time.
LPP includes all or any part of any interest in or any right to the following properties:
prints, etchings, drawings, paintings, sculptures, or other similar works of art;
jewellery;
rare folios, rare manuscripts, or rare books;
stamps; and
coins.
To determine the value of many LPP items, you can have them appraised by a dealer. You can also refer to catalogues for the value of the properties.
Note
LPP gains do not include gains from selling or donating certified Canadian cultural property to a designated institution. For more information, see Selling or donating certified Canadian cultural property.
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 about these rules, see Personal use property.
To determine if you have a LPP loss and for information on applying these losses to previous or future years, see Listed personal property (LPP) losses.
If you have further questions about the tax treatment of transactions, you should call the CRA information line.
However, my reading of the rules is that it is the increase over $1000 which is taxable.
Of course if you are carrying on a business, that is a whole different matter.
Posted 06/04/2016 06:32 am
