The way T2091 is designed we have to designate principal residence only when the property is sold. What if a client has four properties and want to designate different property each year. Is there any way we can keep track within the tax cycle or client have to keep track. I find it confusing. Anyone has suggestions
Since ITA S230 mandates proper record-keeping for business and property income, the client should specifically hire the accountant to maintain and/or correct the record keeping of ALL of these four income producing properties for all years.
Possibly zero years are available for allocation as “principal residence” as it appears a possibility in the described circumstances that disposition will result in BUSINESS income, and not a Capital disposition.
The T2091 is designed to agree with that Income Tax Act thing. You only designate a property when you sell it. It’s not a designation done year to year.