Published: March 10, 2020
Last Updated: August 15, 2025
CRA Form T2091 is the form used to report the disposition of a taxpayer’s principal residence.
Capital gains arising from the disposition of your principal residence are tax-exempt for all the years during which the property qualified as your principal residence. If the property was your principal residence for the entire duration of ownership, the entire capital gain will be exempt from taxation. These exemptions are commonly referred to as the ‘Principal Residence Exemption’.
Failure to file CRA Form T2091 may result in the denial of your Principal Residence Exemption, making you liable for capital gains tax on the disposition. Additionally, late filing can lead to penalties, even if the disposition would have otherwise qualified for the Principal Residence Exemption.
Disclaimer:
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."
