Fill Out CRA Form T1255 Online
Designation of a Property as a Principal Residence by the Legal Representative of a Deceased Individual
Canada Revenue Agency
Used by the legal representative of a deceased individual to designate a property as the deceased's principal residence for capital gains purposes on the final return.
Reviewed July 2026
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CRA Form T1255, Designation of a Property as a Principal Residence by the Legal Representative of a Deceased Individual, is the form an estate's representative uses to claim the principal residence exemption for a home the deceased person owned. When someone dies, their property is generally treated as sold at fair market value for tax purposes, and the T1255 is how the representative designates the home as the principal residence so some or all of the resulting capital gain can be sheltered.
You can complete Form T1255 in the Universal PDF editor: enter the deceased person's information, the property details, the years being designated, and the amounts used in the gain calculation, then download the finished PDF to file with the final return. Working digitally makes it easier to keep the figures aligned with the rest of the return.
What is CRA Form T1255 used for
The T1255 designates a property, such as a house, cottage, or condominium, as the deceased person's principal residence for specific years of ownership. The principal residence exemption reduces or eliminates the capital gain that would otherwise be taxed on the deemed disposition at death, based on how many of the ownership years are designated.
It is the deceased-person counterpart to Form T2091, which living individuals use when they sell or are deemed to have disposed of their principal residence. Only one property per family unit can be designated for any given year, so estates with both a home and a cottage face a real choice about which years to assign to which property.
Who uses CRA Form T1255
The form is completed by the deceased person's legal representative: the executor named in the will, a court-appointed administrator, or a family member recognized by the CRA as the representative where there is no will. The representative signs the designation on the deceased person's behalf.
It comes into play whenever the deceased owned a residence at death, and also where a residence was sold in the year of death before the person died. Estates where the deceased owned more than one property that could qualify, or used part of the home to earn income, often involve judgment calls, and a tax professional's advice can be worthwhile.
How to fill out CRA Form T1255
Gather the property records first: purchase documents, dates, cost amounts, and a fair market value at the date of death.
- Enter the deceased person's name, social insurance number, and date of death, along with your details as legal representative.
- Describe the property, including its address and the year it was acquired.
- List the tax years being designated as principal residence years.
- Report the proceeds of disposition, which for a deemed disposition at death is generally the property's fair market value, and the adjusted cost base.
- Work through the exemption calculation on the form to arrive at any taxable capital gain, and carry the result to the final return.
- Sign and date the form as legal representative.
Where to send it
File the completed T1255 with the deceased person's final income tax return. For paper filing, that means mailing it with the return to the tax centre that serves the deceased person's area; check the current address on the CRA website before sending. Keep a copy with the estate records, along with the documents supporting the fair market value and cost amounts.
The final return has its own deadlines that depend on the date of death, so it pays to prepare the designation alongside the rest of the return rather than leaving it to the end. If you are also establishing your authority with the CRA or reporting the death, Forms RC552 and RC4111 cover those steps.
Frequently asked questions
When the legal representative of a deceased person designates a property as the deceased's principal residence, usually to apply the principal residence exemption against the capital gain from the deemed disposition at death or from a sale earlier in the year of death.
Both designate a principal residence, but the T2091 is completed by a living individual for their own disposition, while the T1255 is completed by the legal representative on behalf of someone who has died.
It can, when the property qualifies as the principal residence for all years of ownership under the designation rules. If some years are not designated, for example because another property was designated for those years, part of the gain can remain taxable.
Only one property per family unit can be designated for any given year, so the representative has to decide how to allocate the years between the properties. The allocation changes how much gain is sheltered on each, which is a common reason estates get professional tax advice.
It is filed with the deceased person's final income tax return. If filing on paper, mail it with the return to the tax centre serving the deceased person's area, and confirm the current mailing address on the CRA website first.
Generally the property's fair market value at the date of death, supported by evidence such as an appraisal. Keep that documentation with the estate records in case the CRA asks how the value was determined.
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