Form T1079 Designation of a Property as a Principal Residence by a Personal Trust - Canada

Form T1079, Designation of a Property as a Principal Residence by a Personal Trust, is used in Canada to designate a property owned by a personal trust as a principal residence. This form is required for tax purposes, specifically to claim the principal residence exemption on the sale of the property by the trust.

The Form T1079 Designation of a Property as a Principal Residence by a Personal Trust in Canada is filed by the personal trust itself.

FAQ

Q: What is Form T1079?
A: Form T1079 is a form used in Canada to designate a property as a principal residence by a personal trust.

Q: Why would a personal trust need to designate a property as a principal residence?
A: Designating a property as a principal residence for tax purposes can help reduce capital gains tax liability for the trust.

Q: Who should fill out Form T1079?
A: The personal trust that owns the property should fill out Form T1079.

Q: What information is required on Form T1079?
A: Form T1079 requires information about the trust, the property, and the designation period.

Q: Is there a deadline for filing Form T1079?
A: Yes, Form T1079 must be filed by the personal trust with the CRA no later than the trust's tax return due date for the year in which the designation is being made.

Q: What happens if Form T1079 is not filed on time?
A: If Form T1079 is not filed on time, the personal trust may not be able to claim the principal residence exemption and may have to pay capital gains tax on the property.

Q: Can Form T1079 be filed electronically?
A: No, Form T1079 must be filed in paper format with the CRA.

Q: Is there a fee for filing Form T1079?
A: No, there is no fee for filing Form T1079.