| Protected B when completed | ||||||||||||||
| Definitions | ||||||||||||||
| For the purpose of this form, the acquisition date is the date on which the deceased person last acquired or reacquired the property or December 31, 1971, whichever is later. 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. |
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| 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 future years, the reference to spouse is replaced with spouse or common-law partner as defined in the "Definitions" section in Guide T4037, Capital Gains. |
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| Note | ||||||||||||||
| If the deceased person made an election to have their same-sex partner considered their common-law partner for 1998, 1999, and/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. |
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| Information needed to calculate the capital gain | ||||||||||||||
| If you ticked either box 2 or 3 at line 17900 of Schedule 3, you must complete the remainder of this form that is applicable to the deceased person's situation. |
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| 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: |
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| • | the property was the deceased person's principal residence for 1994; or | |||||||||||||
| • | 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 call 1-800-959-8281. |
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| Number of tax years for which the property is designated as a principal residence | ||||||||||||||
| (from line 3 of first page) | 4 | |||||||||||||
| Number of tax years ending after the acquisition date in which the deceased person owned the property (jointly with another person or otherwise): |
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| After 1981 | 5 | |||||||||||||
| After 1971 and before 1982 | + | 6 | ||||||||||||
| Total number of years owned (line 5 plus line 6) | = | 7 | ||||||||||||
| Proceeds of disposition or deemed disposition | 8 | |||||||||||||
| Outlays and expenses made or incurred related to the disposition | 9 | |||||||||||||
| Adjusted cost base at the time of disposition (If the deceased person or their spouse or common-law partner filed Form T664 or T664(Seniors) for this property, do not take into |
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| consideration any increase to the adjusted cost base as a result of that election.) | 10 | |||||||||||||
| Adjusted cost base on December 31, 1981 | 11 | |||||||||||||
| Fair market value on December 31, 1981 | 12 | |||||||||||||
| Adjustments to the cost base made after 1981 (for example, capital expenditures) | 13 | |||||||||||||
| Calculation of the capital gain | ||||||||||||||
| Part 1 | ||||||||||||||
| Proceeds of disposition or deemed disposition (line 8) | 14 | |||||||||||||
| Adjusted cost base at the time of disposition (line 10) | 15 | |||||||||||||
| Outlays and expenses made or incurred (line 9) | + | 16 | ||||||||||||
| Line 15 plus line 16 | = | ► | – | 17 | ||||||||||
| Line 14 minus line 17 | Capital gain before principal residence exemption | = | 18 | |||||||||||
| Amount from line 18 | 19 | |||||||||||||
| Line 4 plus 1 (see note on page 3) | x | 20 | ||||||||||||
| Multiply line 19 by line 20 | = | 21 | ||||||||||||
| Total number of years from line 7 | ÷ | 22 | ||||||||||||
| Divide line 21 by line 22 | = | ► | – | 23 | ||||||||||
| Line 18 minus line 23; if negative, enter "0" | Net capital gain | = | 24 | |||||||||||
| T1255 E (22) | Page 2 of 4 | |||||||||||||