This refers to items that you own primarily for the personal use or enjoyment of your
family and yourself. It includes all personal and household items such as furniture,
automobiles, boats, a cottage, and other similar properties.
Report these dispositions on line 158 of Schedule 3.
When you dispose of personal-use property, you may have
a capital gain or loss. To calculate this gain or loss, follow
- 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 return.
If you acquire personal-use property for donation to a in circumstances
where it is reasonable to conclude that the acquisition of the property relates to
an arrangement, plan, or scheme promoted by another person or partnership, the above
rules do not apply.
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 have to 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.
These loss restrictions do not apply:
- if you disposed of personal-use property that is listed personal property
(see the next section); or
- to a bad debt owed to you from the sale of a personal-use property to a
person with whom you deal at .