--- title: "T2091: Designating a Principal Residence | EverStone CPA" url: https://www.everstonecpa.com/forms/t2091 description: "Form T2091: why every sale of a home is reported since 2016 even when no tax is owed, how the designation works on Schedule 3. See what a late one costs." type: cra-form-guide updated: 2026-09-25 summary: "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." faq_count: 4 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [CRA forms](https://www.everstonecpa.com/forms) T2091(IND) CRA form # T2091(IND): Designation of a Property as a Principal Residence T2091(IND) at a glance — the key facts from this page, in one view. **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. **Selling a home you lived in?** We designate the principal residence on your return and work out any taxable portion. Personal returns from $125. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=personal#enquiry-form) Designating the wrong years costs considerably more than the form does. [Ask before you designate](https://www.everstonecpa.com/quick-question) — no account needed. ## 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 T2091(IND) 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?** 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. [Ask about your case →](https://www.everstonecpa.com/quick-question) **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 - [CRA — T2091(IND) form page](https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2091ind.html) - [CRA — Reporting the sale of your principal residence](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2016-growing-middle-class/reporting-sale-your-principal-residence-individuals.html) - [CRA — Penalty for accepting a late, amended or revoked election](https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/complaints-disputes/late-amended-revoked-elections/penalty-accepting-a-late-amended-revoked-election.html) 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. ## Related reading - [The capital gains inclusion rate](https://www.everstonecpa.com/tax-update/capital-gains-inclusion-rate) - [Principal residence exemption and business use](https://www.everstonecpa.com/blog/principal-residence-exemption-business-use) - [Change in use rules](https://www.everstonecpa.com/blog/change-in-use-rules-property-canada) - [All CRA forms we cover](https://www.everstonecpa.com/forms) ## Other CRA forms [Rental property: current expense or capital expense?](https://www.everstonecpa.com/blog/rental-property-current-vs-capital-expense) [T2057: Election on Disposition of Property by a Taxpayer to a Taxable Canadian Corporation](https://www.everstonecpa.com/forms/t2057) [The farm rollover: transferring farm property to the next generation](https://www.everstonecpa.com/blog/farm-succession-rollover-canada) [T1135](https://www.everstonecpa.com/forms/t1135) [T5013](https://www.everstonecpa.com/forms/t5013) [T5018](https://www.everstonecpa.com/forms/t5018) [Selling a rental property](https://www.everstonecpa.com/blog/selling-a-rental-property-canada-tax)[The capital gains reserve](https://www.everstonecpa.com/blog/capital-gains-reserve-canada) ## 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](https://www.everstonecpa.com/personal-taxes) sets out what the engagement covers and how it is quoted. Filing one of these? 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)](https://www.everstonecpa.com/email-us) ## Have a question about this? Ask free through [the quick-question form](https://www.everstonecpa.com/quick-question); a CPA replies within one business day. Need more? A 45-minute **Advice Call** is $225 plus applicable tax, credited to your first invoice if you become a client within 60 days. Want us to take it on? [Send an enquiry](https://www.everstonecpa.com/book-online?service=personal#enquiry-form). The designation is made on a personal return, so it is prepared as part of [personal tax filing in Abbotsford](https://www.everstonecpa.com/personal-tax-accountant-abbotsford) rather than in isolation. [Ask a Free Question](https://www.everstonecpa.com/quick-question) [Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) Email info@everstonecpa.com ★★★★★ “…have been completing my bookkeeping, taxes and financials for the last 2 years and they have been amazing. Thank you!” R. H. · Google review --- Source: https://www.everstonecpa.com/forms/t2091 Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online