Selling personal-use capital property

Profits from the sale of almost all capital assets, with the exception of your principal residence, are subject to tax as a capital gain. Unfortunately, losses from the sale of most personal capital assets are not deductible.

For example, if you sell your boat or car at a loss, you cannot claim it as a capital loss. But if you sell it at a profit, half the gain is taxable (see topic 134). With the exception of certain donations (see topic 81), assets that have a cost of $1,000 or less and are sold for $1,000 or less are exempt from this rule. However, assets that cost less than $1,000 and are sold for more than $1,000 still face a tax bill on the difference between their sale price and the $1,000 cut-off point.

Losses from the sale of certain types of personal property, referred to as listed personal property, can be applied against gains from the sale of such property. Listed personal property includes coins, stamps, jewellery, rare books, paintings or sculptures and similar works of art. Listed personal-property losses can be carried back for up to three years and forward for up to seven years, but they can only be applied against gains from the sale of similar property.