Form T2091 PDF Details

Understanding the intricacies of the T2091 form is essential for individuals navigating the complexities of designating a property as their principal residence in Canada, particularly in contexts of capital gains and sales. This form plays a pivotal role when you sell or are considered to have sold your principal residence, or part of it, or when granting an option to buy such property. The significance of the T2091 form lies in its ability to facilitate the designation of a property as a principal residence for tax purposes, thus potentially affecting the capital gain calculation for the year in question. Filling out and attaching this form to your tax return becomes necessary if a capital gain needs to be declared. Yet, if the property has been your principal residence for every year you owned it, you may not report any capital gain. Important nuances include considerations for periods of non-residence in Canada, the implications for properties jointly owned with a spouse or common-law partner, and specific historical election considerations under Form T664 or T664(Seniors). Additionally, the form requires detailed information, such as adjustments to the cost base post-1981, the fair market value at the end of 1981, and a comprehensive calculation of the capital gain or loss incurred, ensuring accurate tax reporting and compliance with Canadian Revenue Agency (CRA) requirements.

QuestionAnswer
Form NameForm T2091
Form Length2 pages
Fillable?Yes
Fillable fields21
Avg. time to fill out4 min 42 sec
Other namesPre-1982, T4037, t2091, form t2091 instructions

Form Preview Example

Adjustments to the cost base made after 1981 (for example, capital expenditures)
Fair market value on December 31, 1981
After 1981 (as per designation above)

Protected B

when completed

DESIGNATION OF A PROPERTY AS A PRINCIPAL RESIDENCE

BY AN INDIVIDUAL (OTHER THAN A PERSONAL TRUST)

Use this form to designate a property as a principal residence and to calculate the capital gain for the year you:

disposed of, or were considered to have disposed of, your principal residence, or any part of it; or granted someone an option to buy your principal residence, or any part of it.

Attach one copy of this form to your return only if a capital gain has to be reported. If the property is designated as your principal residence for all the years in which you owned it, there is no capital gain.

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.

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 spouse. 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 could not designate a different housing unit as his or her principal residence.

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:

the property was your principal residence for 1994; or

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 www.cra.gc.ca/forms or call 1-800-959-2221.

For more information about designating a principal residence and what qualifies as a principal residence, see Interpretation Bulletin IT-120, Principal Residence, or the "Principal residence" chapter in Guide T4037, Capital Gains.

Designation

For the purpose of this form, the acquisition date is the date on which you acquired or last reacquired the property,

or December 31, 1971, whichever is later. 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.

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.

Description of property designated:

I,

 

, hereby designate the property described above to have been my principal residence for the

 

(print your name)

following tax years ending after the acquisition date: a)

(specify which tax years after 1971 and before 1982)

b)

(specify which tax years after 1981)

For those years before 1982, I confirm that I have not designated any other property as my principal residence.

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.

Signature

Social insurance number

Date

Information needed to calculate the capital gain

Number of tax years for which the property is designated as a principal residence:

Before 1982 (as per designation above). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total number of years designated (line 1 plus line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number of tax years ending after the acquisition date in which you owned the property (jointly with another person or otherwise):

Before 1982 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

After 1981 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total number of years owned (line 4 plus line 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Proceeds of disposition or deemed disposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Outlays and expenses related to the disposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adjusted cost base on December 31, 1981 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

T2091 (IND) E (12)

(Vous pouvez obtenir ce formulaire en français à www.arc.gc.ca ou en composant le 1-800-959-3376.)

1

2

3

4

5

6

7

8

9

10

11

12

Reduction as a result of the capital gains election (line 66 of Form T2091(IND)-WS)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Post-1981 loss (line 45 minus line 46; if negative, enter "0")
Proceeds of disposition or deemed disposition (line 7)
Fair market value on December 31, 1981 (line 11)

Calculation of the capital gain

Protected B

 

 

 

when completed

 

Part 1

 

 

 

 

 

 

 

 

 

 

 

Proceeds of disposition or deemed disposition (line 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adjusted cost base at the time of disposition (line 9)

 

 

14

 

 

15

 

Outlays and expenses (line 8)

 

 

 

 

Line 14 plus line 15

 

 

 

 

 

 

 

Capital gain before principal residence exemption (line 13 minus line 16) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount from line 17

 

 

18

 

 

19

 

Line 3 plus 1 (one year is granted by law)

 

 

 

20

 

Multiply line 18 by line 19

 

 

÷

 

21

 

Line 6

 

 

Divide line 20 by line 21

 

_

 

 

 

 

Net capital gain from Part 1 (line 17 minus line 22; if negative, enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 23 above on line 53 in Part 3 below.

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 24 to 31 and enter "0" on line 32.

Fair market value on December 31, 1981 (line 11)

 

 

 

Adjusted cost base on December 31, 1981 (line 10)

 

 

 

 

. . . . . . . . . . . . . .

. . . . . . .

 

 

Pre-1982 gain before principal residence exemption (line 24 minus line 25)

 

 

 

Amount from line 26

 

 

27

 

 

 

28

 

 

Line 1 plus 1 (one year is granted by law)

 

 

 

 

29

 

 

Multiply line 27 by line 28

 

 

 

÷

 

30

 

 

Line 4

 

 

 

 

 

Divide line 29 by line 30

 

 

 

 

 

 

 

Pre-1982 gain (line 26 minus line 31; if negative, enter "0")

 

 

 

b)Post-1981 gain – If you designated the property as a principal residence for all the years you owned it after 1981, enter "0" on line 44 and complete area d) below.

Proceeds of disposition or deemed disposition (line 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fair market value on December 31, 1981 (line 11). If the fair market value of the

 

 

 

 

 

 

property on December 31, 1981, is more than the amount on line 33, enter "0" on

 

 

34

 

 

 

 

 

line 44 and complete areas c) and d) below

 

 

 

 

35

 

 

Adjustments made to the cost base after 1981 (line 12)

 

 

36

 

 

Outlays and expenses (line 8)

 

 

 

 

 

Add lines 34 to 36

 

 

 

 

 

 

 

 

Post-1981 gain before principal residence exemption (line 33 minus line 37) . . . .

 

 

 

 

 

. . . . . . . . . . . . . .

. . . .

. . .

 

 

Amount from line 38

 

 

39

 

 

 

40

 

 

Line 2

 

 

 

41

 

 

Multiply line 39 by line 40

 

 

÷

 

42

 

 

Line 5

 

 

 

 

 

Divide line 41 by line 42

 

 

 

 

 

 

 

 

Post-1981 gain (line 38 minus line 43; if negative, enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c) Post-1981 loss

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d) Net capital gain from Part 2

Pre-1982 gain, if any (line 32)

 

 

48

 

49

Post-1981 gain, if any (line 44)

 

 

 

Line 48 plus line 49

 

50

 

51

Post-1981 loss, if any (line 47)

 

 

Net capital gain from Part 2 (line 50 minus line 51; if negative, enter "0")

 

 

 

 

 

 

13

16

17

22

23

24

25

26

31

32

33

37

38

43

44

45

46

47

52

Part 3

Total capital gain (If you completed Part 2, enter the amount from line 23 or line 52, whichever is less. Otherwise, enter the amount from line 23)

53

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 53 on line 158 of Schedule 3, Capital Gains (or Losses), for dispositions or deemed dispositions.

Part 4

Total capital gain before reduction (line 53) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . Capital gain (line 54 minus line 55; if negative, enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter the amount from line 56 on line 158 of Schedule 3, Capital Gains (or Losses), for dispositions or deemed dispositions.

54

55

56

Privacy Act, Personal Information Bank number CRA PPU 005

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