Form T2091(IND)-WS Principal Residence Worksheet - Canada

Form T2091(IND)-WS Principal Residence Worksheet is used in Canada for calculating the capital gains tax exemption on the sale of a principal residence. It helps determine the taxable portion of the gain from the sale and provides information about the property and its usage.

The Form T2091(IND)-WS Principal Residence Worksheet in Canada is filed by individuals who are selling or changing the use of their principal residence.

FAQ

Q: What is Form T2091(IND)-WS?A: Form T2091(IND)-WS is the Principal Residence Worksheet for individuals in Canada.

Q: What is a principal residence?A: A principal residence is the main home that an individual lives in and considers their primary residence.

Q: Why do I need to fill out Form T2091(IND)-WS?A: You need to fill out this form to report the sale of your principal residence and claim the principal residence exemption.

Q: What is the principal residence exemption?A: The principal residence exemption is a tax benefit that allows you to avoid paying tax on the capital gains from the sale of your principal residence.

Q: What information is required on Form T2091(IND)-WS?A: Form T2091(IND)-WS requires you to provide details about your principal residence, such as the address, years of ownership, and capital gain.

Q: How do I calculate the capital gain on the sale of my principal residence?A: To calculate the capital gain, subtract the adjusted cost base (ACB) of your property from the proceeds of the sale.

Q: Can I claim the principal residence exemption for a property I don't live in?A: No, the principal residence exemption can only be claimed for a property that you live in and consider your principal residence.

Q: Are there any penalties for not reporting the sale of my principal residence?A: Yes, failure to report the sale of your principal residence may result in penalties, interest, and potential loss of the principal residence exemption.

Q: Do I need to submit Form T2091(IND)-WS with my tax return?A: No, you do not need to submit Form T2091(IND)-WS with your tax return, but you should keep it for your records in case the CRA requests it.