Canada Revenue Agency |
Agence du revenu du Canada |
Protected B when completed | ||||||||||||||||||||
Designation of a Property as a Principal Residence | Tax year | |||||||||||||||||||||
by an Individual (Other than a Personal Trust) | ||||||||||||||||||||||
Use this form to designate a property as a principal residence. You must also complete the "Principal residence designation" section of Schedule 3 for the year you are in one of the following situations: |
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• | You disposed of, or were considered to have disposed of, your principal residence, or any part of it | |||||||||||||||||||||
• | You granted someone an option to buy your principal residence, or any part of it | |||||||||||||||||||||
Note | ||||||||||||||||||||||
If you were not a resident of Canada for the entire time you 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. |
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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. |
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You can only designate one property as your principal residence for any specific year. However, where you sell a principal residence and buy another (or move to another property that you own) 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 your principal residence. |
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For dispositions that occurred after October 2, 2016, if you were a non-resident throughout the taxation year in which the property was purchased or acquired, the "plus 1" rule does not apply. |
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For dispositions after 2022, if you 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. For more information on these new rules and relevant life event exceptions, see Guide T4037. |
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If you are filing 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. |
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Definitions | ||||||||||||||||||||||
For the purpose of this form, the acquisition date is the later of the following: December 31, 1971, or the date on which you acquired or last reacquired the property. However, if you or your spouse or common-law partner filed Form T664 or T664(Seniors), you or your 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 you are 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. |
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Note | ||||||||||||||||||||||
If you made an election to have your same-sex partner considered your common-law partner for 1998, 1999, or 2000, then, for those years, your common-law partner also can not designate a different housing unit as their principal residence. |
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T2091 (IND) 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. |
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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 your situation. |
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If you disposed of, or were considered to have disposed of, a property for which you or your 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: |
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• | The property was your principal residence in 1994 | |||||||||||||||||||||
• | You are designating the property in this form as your principal residence for any tax year | |||||||||||||||||||||
You 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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Section 1 – Description of property | ||||||||||||||||||||||
Provide the information requested below for the property you disposed of in the tax year. Complete a separate form for each property you sold. |
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Address | Year of acquisition | Proceeds of disposition | ||||||||||||||||||||
Street number, street name, and unit number if applicable | ||||||||||||||||||||||
Prov./Terr | Postal code | City | Country | |||||||||||||||||||
9955 | 9954 | |||||||||||||||||||||
Designation | ||||||||||||||||||||||
I, | , hereby designate the property described above to have been my principal residence | |||||||||||||||||||||
(print your name) | for the following number of tax years ending after the acquisition date: | |||||||||||||||||||||
After 1981 | 1 | |||||||||||||||||||||
After 1971 and before 1982 | + | 2 | ||||||||||||||||||||
Total number of years designated (line 1 plus line 2) | 9956 | = | 3 | |||||||||||||||||||
For those years after 1981, I also confirm that neither I, nor my spouse or common-law partner (who was not separated and living apart from me throughout the year under a judicial separation or written separation agreement), nor any of my 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 I am designating the property and throughout which I was under 18 and unmarried or not in a common-law partnership, I also confirm that neither my mother, father, nor any of my 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. |
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For those years before 1982, I confirm that I have not designated any other property as my principal residence. | ||||||||||||||||||||||
Note | ||||||||||||||||||||||
If the property was designated as a principal residence for the purpose of filing Form T664 or T664(Seniors), you have to include those previously designated tax years as part of this principal residence designation. |
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Signature | Social insurance number | Date (Year Month Day) | ||||||||||||||||||||
T2091 (IND) E (23) | Page 2 of 4 |