Listed personal property (LPP) is a special subset of PUP. Therefore, the rules that apply to PUP also applies to LPP except for the fact that capital losses arising on the disposition of LPP can be use for deduction. LPP loss may also be carried back three years and can carry forward seven years. However, this loss may only be deducted against the net gains of LPP. LPP is very specific and only certain items are qualified. LPP includes:
- Print, etching, drawing, painting, sculpture, or other similar work of art
- Rare folio, rare manuscript or rare book
If the item is not in this list then it is not considered a LPP.
Losses can be carry forward or backward through taxation years.
All capital loss can be carry back three years and carry forward indefinitely. However, these losses may only be able to use to offset capital gains. Any excess losses still available after the offset are carried forward again to another taxation year where they are needed.