REPORTING THE SALE OF YOUR PRINCIPAL
RESIDENCE
On October 3, 2016, the federal government
announced an administrative change to the reporting
requirement for the sale of a principal
residence to the Canada Revenue Agency (CRA).
Therefore, starting with tax year 2016 and subsequent taxation
years you will be required to report the basic information, the
date of acquisition, proceeds of disposition and description of the
property.
For more information, please visit the following link
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
To report the sale of your principal residence, please follow
the steps below:
1. On the "Left-side menu on the Interview
tab", select the "CRA Questions"
topic.
2. On the page that appears, go to the line "Did you
sell a principal residence in
2019?". The sale of a principal
residence must now be reported along with any principal residence
designation.
3. If you answer "Yes", a topic will be
generated in the "Left-side menu on the Interview
tab" with the heading "Capital gains (or losses)
& ABIL".
4. On the page appearing to your right, click on
the plus sign "+"
icon to the right of the line "Personal use property
(Including the principal residence)".
5. On the page that appears, enters the relevant information in
the first fields. If you are a co-owner of the residence with your
spouse, go to the line "Your percentage share of capital
gain/loss recorded here" enter your percentage.
6.The following line will be generated "Do you wish to
transfer the remainder to your spouse's tax return (if
applicable)?".
7. If you answer "Yes" you do not need to
answer the CRA's question "Did you sell a principal
residence" in your spouse's file because
the program will transfer the information into their file.
8. Then go to the "Principal residence" section
and go to the line that starts as follow: "Designation of
the property as a principal residence to the Canada Revenue Agency
(CRA)." and answer, "Yes" if the
property that was sold was your principal residence as defined by
the CRA and enter the address of the principal residence.
9. Next, go to the "Designation" section and
select the period (taxation years) during which that property was
designated as your principal residence. In the fields that follow,
enter the year of beginning and the year of the end as the
principal residence.
10. However, if you have not permanently resided in your
principal residence, click
the plus sign "+
Add another" icon to create another occupancy period for
your residence.
11 If you rented your residence during the unoccupied period, go
to the line "Change in use of property and election under
section 284 or 286.1", and by selecting
"Yes" a field will be created to indicate the
period (from what year to what year) during which the residence was
leased.
Schedule 3 will be generated, as well as
page 2 of this schedule by the program which will indicate that the
property was your principal residence for all the years
during which you were the owner.
In addition, Form T2091 "Designation of a property as a
principal residence by an individual" will be generated by
the program.
Moreover, for residents of
Quebec, Schedule
G and Form TP-274 will be
produced by the program.
ID: 20191218120534IB.xml
Webpage: KPA330-20191218120534IB.htm
