Designation of Property as a Principal Residence
If you sold your principal residence in the course of the year, fill out form TP-274-V, Designation of Property as a Principal Residence and submit it with your income tax return. You will thereby avoid having all or a portion of any profit considered a taxable capital gain.
You may designate a property as your principal residence only if you, your spouse, your former spouse or your child ordinarily used the property as your housing unit during the year.
You may also designate a property as your principal residence only if all of the following conditions are met:
- You own the property, alone or jointly with another person.
- You are designating no other property as your principal residence for the year.
- For years after 1981, no other property may be designated as a principal residence for the year by
- your spouse (unless you lived apart throughout the year, pursuant to a judicial separation or a written separation agreement);
- your child, unless, during the year, he or she had a spouse or was aged 18 or over;
- your father or mother, or your brother or sister (unless, during the year, your brother or sister had a spouse or was aged 18 or over), if you yourself did not have a spouse and were not aged 18 or over during the year.
For more information on which type of property may be designated as a principal residence, the conditions for designating a principal residence, the change in use of a principal residence or the concepts of "sale price" and "adjusted cost base," consult the section of the brochure Capital Gains and Losses (IN-120-V) dealing with a principal residence.