T2091 Forms: 1  
Federal forms: 

Protected B when completed
 
Designation of a Property as a Principal Residence by an Individual
(Other than a Personal Trust)
T2091 (IND)
Tax year: 2023
 
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:
  • 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.
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.

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.
Address Year of acquisition Proceeds of disposition
Street No Street name City
Prov./Terr. Postal code Country
9955 9954
         

Designation
 
I, Demo EachTax , 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.
 
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.

 
Signature Social insurance number Date
 
                               

 

2
  Protected B when completed

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.

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 partner. 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.

Note
If you made an election to have your same-sex partner considered your common-law partner for 1998, 1999, and/or 2000, then, for those years, your common-law partner also can not designate a different housing unit as his or her principal residence.


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 your particular situation.
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:
  • the property was your principal residence for 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.
 
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 you owned the property
(jointly with another person or otherwise):
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 you or your spouse or common-law partner filed Form T664 or T664(Seniors) for this property, do not take into 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 at bottom of next page) 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 
                               
 

3
  Protected B when completed
Part 2
 
Complete Part 2 only if the property disposed of is one of two or more properties that qualify as principal residences a family member owned on December 31, 1981, and continuously thereafter until its disposition. You will find a definition of family in the "Principal residence" chapter in Guide T4037, Capital Gains. In all other cases, do not complete Part 2 and enter the amount from line 24 above on line 54 in Part 3 on the next page.
 
Tick the checkbox if Part 2 applies.
 
A. Pre-1982 gain - If you designated the property as a principal residence for all the years you owned it before 1982, do not complete lines 25 to 32. Instead, enter "0" on line 33.
Fair market value on December 31, 1981 (line 12)  25 
Adjusted cost base on December 31, 1981 (line 11) -  26 
Line 25 minus line 26 Pre-1982 gain before principal residence exemption =  27 
 
Amount from line 27  28 
Line 2 plus 1 (see note at bottom of the page) x  29 
Multiply line 28 by line 29. =  30 
Number of years from line 6  31 
Divide line 30 by line 31. = -  32 
Lline 27 minus line 32; if negative, enter "0" Pre-1982 gain =  33 
                               
 
B. Post-1981 gain - If you designated the property as a principal residence for all the years you owned it after 1981, do not complete lines 34 to 44. Instead, enter "0" on line 45 and complete area D.
Proceeds of disposition or deemed disposition (line 8)  34 
 
Fair market value on December 31, 1981 (line 12). If the fair market value of the property on December 31, 1981, is more than the amount on line 34, enter "0" on line 45 and complete areas D and D.  35 
Adjustments made to the cost base after 1981 (line 13) +  36 
Outlays and expenses (line 9) +  37 
Add lines 35 to 37. = -  38 
Line 34 minus line 38 Post-1981 gain before principal residence exemption =  39 
 
Amount from line 39  40 
Number of years from line 1 x  41 
Multiply line 40 by line 41. =  42 
Number of years from line 5  43 
Divide line 42 by line 43. = -  44 
Line 39 minus line 44; if negative, enter "0" Post-1981 gain =  45 
 
C. Post-1981 loss
Fair market value on December 31, 1981 (line 12)  46 
Proceeds of disposition or deemed disposition (line 8) -  47 
Line 46 minus line 47; if negative, enter "0" Post-1981 loss =  48 
 
D. Net capital gain
Pre-1982 gain, if any (line 33)  49 
Post-1981 gain, if any (line 45) +  50 
Line 49 plus line 50 =  51 
Post-1981 loss, if any (line 48) -  52 
Line 51 minus line 52; if negative, enter "0" Net capital gain =  53 
 
 
Note
One year is granted by law. If you disposed of your principal residence after October 2, 2016, and were a non-resident throughout the year of acquisition of the property, you are not eligible to use the "plus one" rule in this calculation.
                               
 

4
  Protected B when completed
Part 3
 
If you completed Part 2, enter the amount from line 53 or line 24 of Part 1, whichever is less. Otherwise, enter the amount from line 24. Total capital gain  54 
                               

Part 4
 
Complete Part 4 only if you or your spouse or common-law partner filed Form T664 or T664(Seniors) for this property.
In all other cases, enter the amount from line 54 on line 15800 of Schedule 3, Capital Gains (or Losses), for dispositions or deemed dispositions.
 
Total capital gain before reduction (line 54)  55 
Reduction as a result of the capital gains election (line 66 of Form T2091(IND)-WS). -  56 
Line 55 minus line 56 (if negative, enter "0") Capital gain =  57 
 
Enter the amount from line 57 on line 15800 of Schedule 3, Capital Gains (or Losses), for dispositions or deemed dispositions.