Starting with the 2017 tax year, preparers must complete forms T2091 and/or T1255 for each real estate property disposed of by taxpayers in the year, including their principal residence.
In the case of multiple properties disposed by taxpayer in the year, complete forms T2091 and/or T1255 for each property.
How are the updated and new forms managed?
The preparer completes the Schedule 3 form and S3 Principal Residence Details Form.
The preparer completes the new T2091 and/or T1255 form and sends a copy to the client for their signature. Clients sign the new form and return it to the preparer.
The T1255 and T2091 forms each contain some data that transmits to CRA.
Complete the TP274 form if the client is a resident of Quebec.
Can a preparer enter data directly into the new T1255 or T2091 forms?
Data in the Description of property sections of the new T1255 and T2091 forms flows from the client information entered on the S3 Principal Residence Details form. Enter any remaining required data on the new forms manually.
Is it necessary to retain the T1255 or T2091 forms?
A signed copy of Form T2091 - Designation of a Property as a Principal Residence by an Individual (or Form T1255 for deceased taxpayers) must be kept by the taxpayer in the case the CRA asks for it.
Undertaking the workflow
1. Complete the individual T1 Info pages for the residence owner and spouse (if applicable).
2. Open the Schedule 3 form.
3. Select an option under Line 179:
Note: Steps 4 and 5 below should be undertaken only for one spouse's return if the property is owned 50/50 between spouses.
4. Click the S3PrincipalResidenceDetail link above the section. The S3 Principal Residence Detail form opens.
Note: Each property that is disposed of automatically links to a T2091 form. Each property disposed of by the designated legal representative of a deceased taxpayer automatically links to a T1255 form.
5. Complete the S3 Principal Residence Detail form as required; note that the section Designated by legal representative of deceased? is automatically populated by the names of the residence owner and spouse (if applicable).
If the Designated by legal representative of deceased? option is not selected, the Description of property section of the T2091 form populates:
Complete the T2091 and/or T1255 Form
If the residence was owned 100% by an individual in the relationship, the non-owner spouse does not complete a T2091 or T1255 form.
If the residence was owned in a 50/50 split, a T2091 or T1255 form must be completed for each spouse as follows:
- If option 1 in Line 179 of Schedule 3 was selected, complete only the first page elements of the T2091 form that were not automatically calculated. If options 2 or 3 in Line 179 of Schedule 3 were selected, it is necessary to complete the remaining elements of the form applicable to the specific situation, or:
- If option 1 in Line 179 of Schedule 3 was selected, complete only the first page elements of the T1255 form that were not automatically calculated. If options 2 or 3 in Line 179 of Schedule 3 were selected, it is necessary to complete the remaining elements of the form applicable to the specific situation.