Homeowner

Tax Tip: Form T664 and Selling Your Principal Residence

The T664 tax form, Election to Report a Capital Gain on Property Owned, was filed by many taxpayers at the end of Feb. 22, 1994. If you filed this form and want to designate the same home as your principle residence, you can use Form T2091 to calculate your capital gains reduction.

If you filed Form T2091, the Canada Revenue Agency considers that you sold your house on Feb. 22, 1994 and reacquired it the next day. Therefore, when you dispose of this property, you cannot calculate capital gains using its purchase price. Instead, you must use its deemed value from Feb. 23, 1994.

If you dispose of your personal residence, the Canada Revenue Agency does not require you to report the gains. However, you must designate the house as your principal residence using Form T2091.

However, representatives of deceased taxpayers should designate the principal residence using Form T1255.