Principal residence and other real estate

When you sell your home or when you are considered to have sold it, you may realize a capital gain. If the property was solely your principal residence for every year you owned it, you do not have to pay tax on the gain. If at any time during the period you owned the property, it was not your principal residence, or solely your principal residence, you might not be able to benefit from the principal residence exemption on all or part of the capital gain that you have to report.

If you sold or if you were considered to have sold property in 2023 that was, at any time, your principal residence, you must report the sale on Schedule 3, Capital Gains (or Losses), and Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust). See Disposing of your principal residence for more information.

Forms and publications

• Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income
• Guide T4036, Rental Income
• Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust)
• T2091(IND)-WS, Principal Residence Worksheet
• Form T1255, Designation of a Property as a Principal Residence by the Legal Representative of a Deceased Individual
• Income Tax Folio S1-F3-C2, Principal Residence

Related Topics

• GST/HST and home construction
• Homeowners
• Lines 12599 and 12600 – Rental income