Personal Finance

Sold my primary home when do I file it in taxes?

  • Last Updated:
  • Mar 20th, 2022 9:58 am
Deal Addict
Feb 17, 2012
2014 posts

Sold my primary home when do I file it in taxes?

Me and my wife sold our townhome in January 2022 but closing was March 2022. It was our primary home so i understand it is tax free on capital gains. We currently do not own a home anymore but we have a pre construction closing October 2022 but probably will be delayed/closing January/February 2023. Which tax year do I file it under? 2021 or 2022 tax year?
2 replies
Deal Addict
Jan 1, 2017
1819 posts
Transaction closed in 2022 so you report it on your 2022 tax return which you complete in 2023.
Deal Fanatic
User avatar
Mar 10, 2018
5162 posts
does it matter?
rules are pretty clear right?

If you sold your property in 2021 and it was your principal residence you have to report the sale and designate the property on Schedule 3, Capital Gains (or Losses). ... dence.html


John (a resident of Canada) put his principal residence (property 1) up for sale in January 2021. Property 1 has been John’s only principal residence for all the time he has owned it. He purchased a new house (property 2) in February 2021 and took possession of it as his principal residence in March 2021. There is a special rule (the “plus 1” rule) that allows a taxpayer to treat both properties as eligible for the principal residence exemption for a year where one residence is sold and another is purchased in the same year, even though only one of them may be designated as such for that year. For this reason, John can tick box 1 at line 17900 on page 2 of Schedule 3 to designate property 1 as his principal residence for all years including 2021 (or for all years except one year). In addition, John will need to complete the first page of Form Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust), assuming he finally sold property 1 before the end of 2021. However, John should keep his decision in writing for future reference, especially for when he sells property 2.
Tried new coffee and doughnut. Found same old stale thing. expected bill of six bucks but it was 600 million. Big mistake so the guy said don't worry it is on the house. going back to McD.


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