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Principal Residence Designation Form: Designation of a Property as a Principal Residence by an Individual (Other than a Personal Trust)
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Form T2091(IND) in short
Form T2091(IND) is how an individual designates a home as their principal residence when they sell it, are considered to have sold it, or grant someone an option to buy it. It works with the principal residence section of Schedule 3. If the home was not your principal residence for every year you owned it, the form also calculates the capital gain that remains.
| Issued by | Canada Revenue Agency (CRA) |
|---|---|
| Current version | T2091(IND) E (25) (checked 2026-10-25) |
| Who fills it in | An individual, other than a personal trust, who disposed of or was considered to have disposed of a principal residence or part of one, or who granted an option to buy it. One form is completed for each property sold. |
| Who receives it | The Canada Revenue Agency, with your income tax and benefit return. |
| Where to send it | If you file a paper return, the form says you must complete, sign and attach it. If you file electronically, keep it in case the CRA asks to see it. Any remaining gain goes on line 15800 of Schedule 3. |
| Deadline | Filed with your return for the tax year of the sale or deemed sale. |
| Official links | Official page · Official PDF |
What changed
This is the 2025 version (T2091(IND) E (25)). The form notes that for dispositions after 2022, a housing unit in Canada owned for less than 365 consecutive days is generally a flipped property. The gain is then business income, and the principal residence exemption cannot be used, unless a life event exception applies.
How to fill out Form T2091(IND), line by line
| Top of form | Tax year The year of the sale or deemed sale. |
| Section 1 | Description of property The property's address, year of acquisition and proceeds of disposition. For joint ownership enter only your share. If part of the property was used for rental or business, enter only the share for the part used as a principal residence. |
| Section 1, lines 1 to 3 | Designation Print your name and enter the number of tax years you designate the property as your principal residence, split into years after 1981 and years after 1971 and before 1982. Then sign, add your SIN and date it. |
| Section 2, lines 4 to 13 | Information to calculate the gain Years designated, years owned, proceeds, selling expenses, adjusted cost base, and values on December 31, 1981 if they apply. Only needed if you ticked box 2 or 3 at line 17900 of Schedule 3. |
| Section 2, Part 1, lines 14 to 24 | Net capital gain The gain before the exemption, then the exempt part using the number of designated years plus one, divided by the years owned. Line 24 is the gain that remains. |
| Section 2, Part 2, lines 25 to 53 | Properties owned since 1981 Only if the property was one of two or more qualifying principal residences a family member owned on December 31, 1981 and kept until the sale. It splits the gain into pre-1982 and post-1981 parts. |
| Section 2, Part 3, line 54 | Total capital gain The lower of line 53 and line 24 if you completed Part 2, otherwise line 24. |
| Section 2, Part 4, lines 55 to 57 | 1994 capital gains election Only if you or your spouse or common-law partner filed Form T664 or T664(Seniors) for this property. The reduction comes from Form T2091(IND)-WS. Line 57 goes on line 15800 of Schedule 3. |
Common mistakes to avoid
- Not reporting the sale at all. The form says you must also complete the principal residence designation section of Schedule 3 in the year of the sale.
- Designating two properties for the same year. The form says you can only designate one property for any year, although the plus one rule can cover a year when you sold one home and bought another.
- Entering the full sale price for a jointly owned home instead of your share.
- Using the plus one rule when you were a non-resident for the whole year you bought the property, for sales after October 2, 2016.
- Claiming the exemption on a home owned less than 365 consecutive days, for sales after 2022, when no life event exception applies.
- Not calling the CRA when you were a non-resident for part of the time you owned the home. The form says non-residence may reduce or remove the exemption.
- Filing a paper return without signing and attaching the form.
Questions about Form T2091(IND)
Do I need T2091(IND) if I sold my home and it was my principal residence every year?
You complete Section 1 only. If you ticked box 1 at line 17900 of Schedule 3, the form says you do not need to report any gain on Schedule 3 for this property.
What is the plus one rule?
When you calculate the exempt part of the gain, you add one year to the number of years designated. The form says this lets you cover both homes in a year when you sell one and buy another, even though only one can be designated for that year.
Do I send the form with my return?
With a paper return, yes. The form says you must complete, sign and attach it. If you file electronically, keep it in case the CRA asks.
What is a flipped property?
For sales after 2022, the form says a housing unit in Canada owned or held for less than 365 consecutive days is generally a flipped property. The gain is taxed as business income and the principal residence exemption cannot be used, with exceptions for certain life events described in Guide T4037.
Can my spouse and I each designate a different home?
For years after 1981, the designation confirms that your spouse or common-law partner (unless separated under a judicial separation or written agreement) and your unmarried children under 18 did not designate another property for the same year.
Where can I learn what counts as a principal residence?
The form points to Income Tax Folio S1-F3-C2, Principal Residence, and the Principal residence chapter of Guide T4037, Capital Gains.
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Checked against the official sources on 2026-10-25. PDF Editor Hub is not affiliated with the Canada Revenue Agency or any government agency. This page is general information, not legal or tax advice.