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.
Designating the wrong years costs considerably more than the form does. Ask before you designate — no account needed.
On this page
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 to have ready before you file
Most of the delay is assembling what the form asks for, not the form. Before starting, have to hand the years owned, the years designated, the dates it became and stopped being a principal residence, the proceeds and adjusted cost base, and any change-in-use election filed.
Gathering it first also surfaces the problems early: a missing account number, a balance nobody has actually calculated, a date that does not line up. There is still time to fix them, rather than finding them after a filing has been rejected.
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 may accept a late designation, but a penalty may apply: the lesser of $8,000 and $100 per complete month from the election’s original due date until the CRA receives a satisfactory request. Several missed years can reach the cap.
A late, amended or revoked election carries a penalty of the lesser of $8,000 and $100 per complete month from the original due date until the CRA receives a satisfactory request, and generally must be paid first.
How it is filed
It is filed with the personal return for the year of disposition. Reporting is required for every disposition of a principal residence, including one where the whole gain ends up exempt.
Either way, keep the signed copy and working papers together. An election is only as defensible as the file showing how its figures were reached, and a review asks for that file, not the form.
Common questions about T2091(IND)
Do I have to report selling my home if there is no tax?+
Where does the designation go?+
What if I did not report a sale in an earlier year?+
What if the property was a rental for part of the time?+
Where this comes from
- CRA — T2091(IND) form page
- CRA — Reporting the sale of your principal residence
- CRA — Penalty for accepting a late, amended or revoked election
General information current as of , not advice for your situation. Elections are unforgiving about dates — confirm yours before you file. Please speak with a CPA about your circumstances.
Related reading
- The capital gains inclusion rate
- Principal residence exemption and business use
- Change in use rules
- All CRA forms we cover
Other CRA forms
Who does this work
Every disposition of a principal residence has to be reported, even where the whole gain is exempt. The designation and the reporting are the same job.
If that is where you are, the service page for report a property disposition on a personal return sets out what the engagement covers and how it is quoted.
Elections are date-driven and unforgiving. Email us before the deadline rather than after — we quote the work in writing first.
Email us about T2091(IND)Have a question about this?
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The designation is made on a personal return, so it is prepared as part of personal tax filing in Abbotsford rather than in isolation.
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