T1255: Designation of a Property as a Principal Residence by the Legal Representative of a Deceased Individual
Form T1255 is used by the legal representative of a deceased person to designate a property as that person's principal residence for the principal residence exemption.
This is the genuine CRA PDF, unmodified. Source: CRA official page.
What is T1255?
T1255, Designation of a Property as a Principal Residence by the Legal Representative of a Deceased Individual, lets the estate designate a home as the deceased's principal residence so that some or all of the capital gain on it is exempt from tax. It is used together with Schedule 3 when reporting the disposition on the final return.
This is a dynamic (XFA) PDF designed for Adobe Acrobat Reader and will not fill in a browser or a basic PDF viewer, so download it and open it in the free Adobe Acrobat Reader. The form identifies the property, the years it is designated as the principal residence, and the calculation of the exempt portion of the gain.
Who files T1255?
- Legal representatives and executors settling a deceased person's estate
- Estates reporting the disposition of the deceased's home on the final return
- Representatives claiming the principal residence exemption for the deceased
- Anyone completing Schedule 3 for a deceased individual who owned a qualifying home
How to fill out T1255
- Download the T1255 and open it in the free Adobe Acrobat Reader; it will not fill in a browser.
- Enter the deceased individual's details and identify the property being designated.
- Specify the years the property is designated as the principal residence.
- Calculate the exempt portion of the capital gain using the formula on the form.
- File the T1255 with Schedule 3 and the final return with the CRA.
Get T1255
This is a dynamic PDF from CRA: it only fills in correctly in Adobe Acrobat Reader, so there is no in-browser fill here. Download the genuine T1255 below and open it in the free Adobe Acrobat Reader to complete and save it.
Download the official T1255 PDFFrequently asked questions
When is the T1255 used?
It is used by the legal representative of a deceased person to designate a property as the principal residence so the principal residence exemption can reduce or eliminate the capital gain reported on the final return.
Do I file the T1255 on its own?
No. It is completed alongside Schedule 3 when you report the disposition of the property on the deceased individual's final income tax and benefit return filed with the CRA.