I had moved out of one home (House A) in 2020, and into another (House B). I rented out House A. In 2022, I sold the House A.
For my principal residence designation, I'd like to do the following:
2019 - House A
2020 - House A and B (the plus one rule)
2021 - House B
2022 - House B
I need to report the sale of House A in 2022. The "Number of tax years ending after acquisition date" would be 3 (2020 - 2022).
But I can't seem to get UFile to properly assign the "plus one rule". If I Designate 2020 as the principal residence, UFile will give me one extra year in T2091 (a total of 2 principal residence years), meaning I'd get a capital gain of 1/3 of the total capital gain. But if I don't designate 2020 as the principal residence (ie. I leave that section blank), the line 20 of T2091 (Line 4 plus 1) is set to 0, and I'm on the hook for the entire capital gain.
Could someone help me understand how to set this?