|Agence du revenu
|Protected B when completed
|Designation of a Property as a Principal Residence by
|the Legal Representative of a Deceased Individual
|Use this form to designate a property as a principal residence. You must also complete the "Principal residence designation"
section of Schedule 3 of the deceased person for the year if one of the following applies to the deceased person:
|the person disposed of, or was considered to have disposed of, their principal residence, or any part of it
|the person granted someone an option to buy their principal residence, or any part of it
|If the deceased person was not a resident of Canada for the entire time they owned the designated property, call
1-800-959-8281. The period of non-residence may reduce or eliminate the availability of the principal residence exemption.
|For more information about designating a principal residence and what qualifies as a principal residence, see Income Tax
Folio S1-F3-C2, Principal Residence, or the "Principal residence" chapter in Guide T4037, Capital Gains.
|You can only designate one property as the deceased's principal residence for any specific year. However, where the principal
residence is sold and another one bought (or where the deceased moved to another of their properties) in the same year, the
"plus one" rule in calculating the principal residence exemption amount will allow you to claim the principal residence exemption
for both properties for that year even though you can only designate one property as the deceased's principal residence.
For dispositions that occurred after October 2, 2016, if the deceased was a non-resident throughout the taxation year in which
the property was purchased or acquired, the "plus 1" rule does not apply.
|For dispositions after 2022, if the deceased person owned a housing unit (including a rental property) or held a right to acquire
a housing unit located in Canada for less than 365 consecutive days before the disposition, the property is generally considered
to be a flipped property, unless it was already considered to be inventory of the taxpayer. The resulting gain on the disposition
of a flipped property is taxable as business income and not as a capital gain. Therefore, you cannot use the principal residence
exemption. There are exceptions to this rule when the disposition occurs due to, or in anticipation of, certain life events
(including the death of the taxpayer or a person related to the taxpayer). For more information on these new rules and relevant
life event exceptions, see Guide T4037.
|If you are filing your return electronically, keep this form in case the Canada Revenue Agency asks to see it later. If you are
filing a paper return, you must complete, sign, and attach this form to your return.
|For the purpose of this form, the acquisition date is the later of the following: December 31, 1971, or the date on which the
deceased person last acquired or reacquired the property. However, if the deceased person or their spouse or common-law
partner filed Form T664 or T664 (Seniors), the deceased person or their spouse or common-law partner are not considered to
have disposed of and immediately reacquired the property as a result of that election.
|The term spouse used throughout this form applies to a person to whom the deceased person was legally married. For 1993 to
2000, a spouse included a common-law spouse. For 2001 and later years, the reference to spouse is replaced with spouse or
common-law partner as defined in the "Definitions" section in Guide T4037, Capital Gains.
|If the deceased person made an election to have their same-sex partner considered their common-law partner for 1998,
1999, or 2000, then, for those years, the deceased person's common-law partner also can not designate a different housing
unit as their principal residence.
|T1255 E (23)
|(Ce formulaire est disponible en français.)
|Page 1 of 4
|Protected B when completed
|Completing this form
|If you ticked box 1 at line 17900 of Schedule 3, you only need to complete "Section 1 – Description of Property" below. You do
not need to report any gain amount on Schedule 3 for this property.
|If you ticked either box 2 or 3 at line 17900 of Schedule 3, you must also complete "Section 2 – Calculation of capital gain."
This section starts on the next page and should be completed according to what is applicable to the deceased person's situation.
|If the deceased person disposed of, or was considered to have disposed of, a property for which the deceased person or the
deceased person's spouse or common-law partner filed Form T664 or T664 (Seniors), Election to Report a Capital Gain on Property
Owned at the End of February 22, 1994, use this form to calculate the capital gain for the year if one of the following applies:
|The property was the deceased person's principal residence for 1994
|You are designating the property in this form as the deceased person's principal residence for any tax year
|The deceased person may be entitled to a reduction as a result of the capital gains election. To calculate this reduction, use
Form T2091(IND)-WS, Principal Residence Worksheet. To get this form, go to canada.ca/cra-forms-publications or
|Section 1 – Description of property
|Provide the information requested below for the property disposed of in the tax year. Complete a separate form for each disposition.
|Year of acquisition
|Proceeds of disposition
|Street number, street name, and unit number if applicable
|, the legal representative for the Estate of the Late,
|(print your name)
|hereby designate the property described above to have been the principal residence of the deceased person for the following
tax years ending after the acquisition date:
|After 1971 and before 1982
|Total number of years designated (line 1 plus line 2)
|For those years after 1981, I also confirm that neither the deceased person, nor their spouse or common-law partner (who was
not separated and living apart from the deceased person throughout the year under a judicial separation or written separation
agreement), nor any of the deceased person's children (who were under 18 and unmarried or not in a common-law partnership
throughout the year) designated any other property as a principal residence. For any tax year after 1981 for which the deceased
person designated the property and throughout which they were under 18 and unmarried or not in a common-law partnership,
I also confirm that neither the deceased person's mother, father, nor any of their brothers and sisters (who were under 18 and
unmarried or not in a common-law partnership throughout the year) designated any other property as a principal residence.
|For those years before 1982, I confirm that the deceased person has not designated any other property as their principal
|If the property was designated as a principal residence for the purpose of filing Form T664 or T664(Seniors), the legal
representative has to include those previously designated tax years as part of the deceased person's principal residence
|Legal Representative's Signature
|Deceased's social insurance number
|Date (Year Month Day)
|T1255 E (23)
|Page 2 of 4