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. In 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 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: 20200217143133DE.xml
Webpage: KPA330-20200217143133DE.htm
