Who needs to file a T2091 and When?
This form is used by taxpayers to designate a real property as a principal residence by an individual. The principal residence exemption applies to each year that a property is designated as the principal residence and no other property is so designated. The filing of this form has become more important now that the CRA requires individuals to report the sale of principal residences. T2091 needs to be filed when the principal residence exemption does not fully eliminate the gain on the sale and needs to be filed with the taxpayer’s return for the year the property is disposed of.