When you sell personal-use property, such as cars and boats, in most cases you do not end up with a capital gain. This is 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, 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.

Completing your Schedule 3

Report these dispositions on line 15800 of Schedule 3.

Forms and publications

• Schedule 3, Capital gains (or losses)

Related topics

• Listed personal property
• Principal residence and other real estate
• Line 34900 - Donations and gifts