Date of sale of principal residence near the year end

In which year should the sale of a principal residence be reported when the offer date and sale happens over the year end? The client put the house up for sale in December 2022 and had an accepted offer before the year end. But the actual closing date was in January 2023. Also she had started living in her new place in December as well.

[https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-1-individuals/folio-3-family-unit-issues/income-tax-folio-s1-f3-c2-principal-residence.html#toc2]

In that Folio at paragraph 2.15 it says ‘granted an option to purchase’ so I would understand that to mean an accepted offer. Am I correct on that?

Thanks for any thoughts

The closing date. When money changes hands. Anything can happy between signing of the paperwork and the actual date of closing.

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Thanks, I’ve always used the closing date as well just want to be sure and not be caught out if the property should have in fact been reported to CRA in 2022. Also the wording in that folio ‘option to purchase’ was making me question

It’ always the closing date. The plus one allows for the fact that we can have 2 principal residences in one year.

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An "option to purchase " is a different animal than an “agreement of purchase and sale” contract.