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
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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.
Your 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 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.
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.
If you ticked box 1 at line 17900 of Schedule 3, you only need to complete the "Description of property" section of this form. You do not need to report any gain amount on Schedule 3 for this property.
If you disposed of a housing unit or a right to acquire a housing unit located in Canada after December 31, 2022 and it was owned for less than 365 consecutive days before the disposition of the property unless the property was already considered inventory or the disposition can reasonably be considered to occur due to, or in anticipation of certain life events, the disposition is taxable as business income and not as a capital gain. As a result the disposition would not qualify for the principle residence exemption. For a list of life events, refer to Guide T4037, Capital Gains.
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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Designation
| I, |
Demo EachTax |
, hereby designate the property described above to have been my principal residence |
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(print your name) |
for the following number of tax years ending after the acquisition date: |
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After 1981 |
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1 |
After 1971 and before 1982 |
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+ |
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2 |
Total number of years designated (line 1 plus line 2) |
9956 |
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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. |
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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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