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Principal residence and other real estate

When you sell your home, you may realize a capital gain. If the property was your principal residence for every year you owned it, you do not have to report the sale on your income tax and benefit return.

Topics

What is a principal residence? What type of housing unit can a principal residence be? How does a property qualify to be a principal residence?	Designating a principal residence When to designate your principal residence. When to use Forms T1255 and T2091.
Sale of a principal residence You may have to report the gain on the sale (actual or deemed) of a home using Form T2091, or complete Form T1255. What if you filed Form T664?	Changes in the use of a principal residence You may have to report a capital gain if you change your principal residence to a rental or business property, or vice versa.
Sale of farm property that includes a principal residence Only part of your capital gain may be taxable.	Selling a building Special rules may apply if you sold a building for less than its cost amount and its capital cost.

Forms and publications

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