Like Capital Cost Allowance (CCA), LPP is a term unique to the Income Tax Act, rather than one in common accounting use. LPP is personal chattels (meaning not real estate) that usually appreciated in value over time. Most chattels depreciate, and thus you can claim CCA on them. You can't claim CCA on LPP.
- prints, etchings, drawings, paintings, sculptures and other similar works of art;
- rare folios, manuscripts and books;
Profits on the sale of LPP are reportable capital gains. However, the base value of CPP for capital gains purposes is $1000. So if you buy stamps for $700, and sell them for $1200, you only have a $200 capital gain to report (the increase from the $1000 deemed based value).
LPP losses can only be used to offset other LPP gains, not other income.
What this all means is that you can't invest crazy sums in art, hoping that it will create all sorts of losses for you when you go to sell it that you can deduct against other income. Likewise, you can't spread high end art all over your office, hoping to depreciate its value as regular CCA. Though less expensive pieces should be deductible as regular office expenses.