T1161 and T1243 - your experience

[Anna2024]

Hello,

I'd like to know if someone has ever been questioned by CRA if your car was listed in 1161 but as a reasonable person you didn't file T1243 with the same car on it? You don't have any capital gains on the car and no capital losses for this type of property are accepted.

A closer look at T1243 made me think that a car was not excluded (a car with a capital loss) and I called CRA to clarify the situation.
The response was: "Yes, you must file T1243 + Schedule 3 with your car on it even if there's a loss. The loss won't be taken into consideration." They explained the way they would function: "we're going to take your T1161 and will expect to see everything except specifically excluded items on your T1243. If we don't find you car, we will/may ask questions.

All thoughts on the real necessity to file T1243 with your car on it are welcome.

Thank you,

[nelsona]

Since it doesn't matter if you put it on there, and CRA (rightly, or more likely wrongly) has told you to put it, just put it. It has to have an FMV or more than $10K.

Since it is personal use property, any loss you declare (FMV minus purchase price) on schedule 3 is meaningless at this point.

I never crossed border with property worth 25K so didn't report car either time.

[Anna2024]

Thank you very much for the answer.

I don't think that I got the right answer from CRA. The agent didn't seem sure. I asked about the penalty if T1243 with 0 capital gains is not filed. According to the agent, no penalty is assessed.

I don't think that there's any obligation to file this form + Schedule 3 with 0 capital gains or even acceptable losses. You report losses if you want to use them, if not, you're free to keep this information to yourself.

[nelsona]

You are correct.
I would simply attach a note to your paper return stating that whichever form was not required if you did not meet the reporting threshhold