What the list includes
The CRA treats LPP as personal-use property, with a key difference: LPP usually increases in value over time. The list is specific: art such as prints, etchings, drawings, paintings and sculptures, jewellery, rare folios, rare manuscripts and rare books, stamps, and coins. It covers all or part of any interest in, or right to, those items.
Because the list is specific, an ordinary household item is not LPP. A family car or sofa is personal-use property, not listed personal property. Your accountant can confirm where an unusual item falls.
How a gain or loss is calculated
LPP gains and losses are calculated the same way as for other personal-use property, including the $1,000 minimum for the cost and for the proceeds. A dealer appraisal or catalogue values can help you establish what an item is worth. Report the net gain on Schedule 3.
As an illustration, suppose you sell a painting for $6,000 that cost $2,000, with no selling costs. The gain is $4,000, and the taxable part is half under the current inclusion rate. A second item, a coin collection, sells for $1,500 against a $3,000 cost, a $1,500 loss. Figures are illustrative only.
The loss restriction
Unlike ordinary personal-use property, an LPP loss is not simply lost. But it can only be deducted from gains on other LPP, and you cannot use it to reduce gains on other kinds of property or other income.
If your LPP losses exceed LPP gains in a year, the difference is an LPP loss. You can apply it to LPP gains in any of the three previous years or the next seven. Carrying one back uses Form T1A. An unused loss expires after seven years, so keep a running record.
What to discuss with your accountant
Keep purchase invoices, appraisals, authentication papers and sale records for collectibles, since the cost base and value are your responsibility to support. Track unused LPP losses by year.
Ask about collections sold across several years, gifts or inheritances of valuables, and certified Canadian cultural property, whose sale or donation to a designated institution is treated differently. The wider rules are covered under personal-use property and capital gains.
Sources & editorial notes
Sources checked October 24, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.
- Completing Schedule 3Canada Revenue Agency
- Capital lossesCanada Revenue Agency
- Definitions for capital gains and lossesCanada Revenue Agency
Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.