Personal Use Property (PUP) &
Listed Personal Use Property (LPP)

Personal Use Property (PUP) & Listed Personal Use Property (LPP)​

Personal Use Property (PUP)

Personal use property = property owned by taxpayer and used for his/her enjoyment (not used for earning business or property income)

Special Rules for Personal Use Properties
  • When you dispose of a “personal use property” there can be capital gains; however, no capital losses can be claimed on PUP (capital losses on PUP is deemed to be $NIL)
  • $1000 floor rule
    • If the proceeds of disposition is <$1000; the proceeds is deemed to be $1000
    • If the ACB is <$1,000; the ACB is deemed to be $1000
    • Example
      • Suppose I sell an furniture for $900 and the cost was $500
      • The POD = $1000 and ACB = $1000; Capital Gain = $NIL

Listed Personal Use Properties (LPP)

LPP = Coins, Jewellery, Art, Rare – folios, manuscripts, books, stamps (tip remember: Coin JARS)

Special Rules for LPP
  • $1000 floor rule applies; same as for PUP (see above)
  • Allowable capital losses on LPP’s can be deducted; however, it can only be deducted against taxable capital gains on listed personal use Properties (LPP). If there are no taxable capital gains from other LPP’s, the allowable capital losses on LPP’s cannot be deducted.
  • Any unused allowable capital losses from LPP can be carried back 3 years and carried forward 7 years; the carryovers are done in Division B (rather than Division C like normal net-capital loss)
  • Example:
    • Taxable capital gain on sale of coins = $300
    • Allowable capital loss on sale of Art = $500
      • You can only claim $300 in Allowable Capital Losses;
      • the remaining $200 can be carried back 3 years or carried forward 7 years

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