Hi All,
I'm a little confused on whether or not I have to include certain items on T1243 for deemed disposition.
The items I'm talking about are furniture, tools, jewelry, etc. It's important to note that none of these are rare, work of art or anything like that. They are everyday items that lose value with time and use.
Any assistance would be appreciated! Thank you!
Form T1243 and personal use items
Moderator: Mark T Serbinski CA CPA
List all property that the deemed disposition would would result in a taxable capital gain, or would result in an ACCEPTABLE capital loss. This would exclude most personal property. The form also lists other exceptions.
Don't confuse this with T1161, on which you list ALL property including personal which exceed a certain VALUE.
Don't confuse this with T1161, on which you list ALL property including personal which exceed a certain VALUE.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Thanks for clarifying! :)
Well, my wife does not meet the threshold for reportable properties for T1161 as the only things she has are RESP and RRSP and none of her personal items are worth more than $10k so no form T1161 for her.
For her T1243 every item would be a personal use item and each one of them has lost value. All of it would be at 50% or more loss. I'm not going to bother with that then.
For me I have things for T1161 so I'm listing those. For T1243 I also list those and calculate capital gain. My personal items are same story... Car, some old tools, a TV. Every single one of them lost value since purchase so I'm not going to list them then.
I think based on your post this is acceptable. Thanks!
Well, my wife does not meet the threshold for reportable properties for T1161 as the only things she has are RESP and RRSP and none of her personal items are worth more than $10k so no form T1161 for her.
For her T1243 every item would be a personal use item and each one of them has lost value. All of it would be at 50% or more loss. I'm not going to bother with that then.
For me I have things for T1161 so I'm listing those. For T1243 I also list those and calculate capital gain. My personal items are same story... Car, some old tools, a TV. Every single one of them lost value since purchase so I'm not going to list them then.
I think based on your post this is acceptable. Thanks!
I will add even more clarification to this...
All personal items for both me and my wife are worth $1,000 or less and they all lost value from their original purchase. From the Schedule 3 guide if this is the case you do not have to calculate gain/loss and list on schedule 3 because it would be $0 and all of those are personal use property and not listed personal property. My wife's jewelry is LPP type so its loss could be claimed but because it is worth less than $1000 it is not calculated.
The other exception to this is my car which is worth about $11k so it is listed on my T1161. However, it lost some value but not that much since it was purchased used in 2015. Either way the car's capital loss is not calculated because as per schedule 3 guide personal use property loss cannot be claimed. Only listed personal property loss can be and a car is not LPP.
If anyone has any comments to this, please let me know. Thanks!
All personal items for both me and my wife are worth $1,000 or less and they all lost value from their original purchase. From the Schedule 3 guide if this is the case you do not have to calculate gain/loss and list on schedule 3 because it would be $0 and all of those are personal use property and not listed personal property. My wife's jewelry is LPP type so its loss could be claimed but because it is worth less than $1000 it is not calculated.
The other exception to this is my car which is worth about $11k so it is listed on my T1161. However, it lost some value but not that much since it was purchased used in 2015. Either way the car's capital loss is not calculated because as per schedule 3 guide personal use property loss cannot be claimed. Only listed personal property loss can be and a car is not LPP.
If anyone has any comments to this, please let me know. Thanks!