Personal-use property
When you sell personal-use property, such as cars and boats, you may have a capital gain or loss. In most cases you do not end up with a capital gain, 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 and an example, 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.
If the ACB or proceeds of disposition is more than $1,000, you may have a capital gain or loss. Report the sale on your Schedule 3.