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Where to enter capital gain after selling house?


Joseph0365

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Hi Joseph0365, To report the sale of your principal residence, please follow the steps below:

1. On the "Left-side menu on the Interview tab", select the "CRA Questions" topic.

2. On the page that appears, go to the line "Did you sell a principal residence in 2019?". The sale of a principal residence must now be reported along with any principal residence designation.

3. If you answer "Yes", a topic will be generated in the "Left-side menu on the Interview tab" with the heading "Capital gains (or losses) & ABIL".

4. On the page appearing to your right, click on the plus sign "+" icon to the right of the line "Personal use property (Including the principal residence)".

5. On the page that appears, enters the relevant information in the first fields. If you are a co-owner of the residence with your spouse, go to the line "Your percentage share of capital gain/loss recorded here" enter your percentage.

6.The following line will be generated "Do you wish to transfer the remainder to your spouse's tax return (if applicable)?".

7. If you answer "Yes" you do not need to answer the CRA's question "Did you sell a principal residence" in your spouse's file because the program will transfer the information into their file.

8. Then go to the "Principal residence" section and go to the line that starts as follow: "Designation of the property as a principal residence to the Canada Revenue Agency (CRA)." and answer, "Yes" if the property that was sold was your principal residence as defined by the CRA and enter the address of the principal residence.

9. Next, go to the "Designation" section and select the period (taxation years) during which that property was designated as your principal residence. In the fields that follow, enter the year of beginning and the year of the end as the principal residence.

10. However, if you have not permanently resided in your principal residence, click the plus sign "+ Add another" icon to create another occupancy period for your residence.

11 If you rented your residence during the unoccupied period, go to the line "Change in use of property and election under section 284 or 286.1", and by selecting "Yes" a field will be created to indicate the period (from what year to what year) during which the residence was leased.

Schedule 3 will be generated, as well as page 2 of this schedule by the program which will indicate that the property was your principal residence for all the years during which you were the owner.

In addition, Form T2091 "Designation of a property as a principal residence by an individual" will be generated by the program.

Moreover, for residents of Quebec, Schedule G and Form TP-274 will be produced by the program.

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  • 11 months later...
  • 1 month later...

@Nawal, I have a question about your 4th line instruction: 

"4. On the page appearing to your right, click on the plus sign "+" icon to the right of the line "Personal use property (Including the principal residence)"."

I thought we should + (add) the "Real estate, depreciable property, and other properties" form. I was thinking the "Personal use property" form was for something like a cottage? 

Can you explain the difference? Thank you!

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