T2091(IND): Designation of a Property as a Principal Residence

Reviewed by EverStone CPA · August 2026

Quick answer: Since 2016 every sale of real property in Canada has to be reported — including a principal residence, and even where the whole gain is exempt. T2091(IND) is how the designation is made, and it is reported on Schedule 3.

What the form is

T2091(IND) is the Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust). It is what claims the principal residence exemption on a property you sold.

The rule that catches people is the reporting requirement. All sales of real or immovable property in Canada must be reported to the CRA for 2016 and later tax years — even if there is no capital gain, and even if the entire gain is exempt. Before 2016 an exempt sale of a home often went unreported and nothing came of it. That is no longer true.

The designation is made on the form and reported on Schedule 3 of the personal return.

Who files it

Any individual who sold, or was considered to have sold, a home during the year — including on a change in use, which counts as a deemed disposition even though no money changes hands.

Separate forms exist for other situations: T1255 where a legal representative designates for a deceased individual, and T1079 for a personal trust.

The form at a glance

Item	Detail
Full form name	T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust)
Reported on	Schedule 3 of the personal T1 return
Reporting required since	2016 and later tax years — even where the gain is fully exempt
Deceased individual	Form T1255 instead
Personal trust	Form T1079 instead

What catches people out

“No tax owing” is not a reason not to report. The requirement applies to every sale of real property in Canada from 2016 onward regardless of the outcome, and a sale left off the return is a filing failure even when the exemption would have covered the whole gain.

A change in use is a deemed disposition. Moving into a rental, or starting to rent out a home, can trigger the reporting even though nobody has sold anything.

The CRA will accept a late designation in certain circumstances, but a penalty may apply — the lesser of $8,000 and $100 for each complete month from the election’s original due date to the date the request reaches the CRA in a form it finds satisfactory. A designation missed for several years can therefore reach the cap.

A late, amended or revoked election carries a penalty of the lesser of $8,000 and $100 for each complete month from the election’s original due date to the date the request reaches the CRA in a form it finds satisfactory. The CRA will generally not process the election until it is paid.

Common questions

Do I have to report selling my home if there is no tax?+

Yes. Since the 2016 tax year, every sale of real or immovable property in Canada must be reported, including a principal residence, and including where the entire gain is exempt.

Where does the designation go?+

The designation is made on form T2091(IND) and reported on Schedule 3 of your personal return.

What if I did not report a sale in an earlier year?+

The CRA will accept a late designation in certain circumstances, but a penalty can apply, calculated as the lesser of $8,000 and $100 for each complete month it is late.

What if the property was a rental for part of the time?+

The exemption is calculated by the years designated rather than all-or-nothing, and a change in use is treated as a deemed disposition, so the form is where the split gets worked out.

Where this comes from

General information current as of August 2026, not advice for your situation. Elections are unforgiving about dates — confirm yours before you file. Please speak with a CPA about your circumstances.

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