CRA states that an individual accessing the “+1” rule on a principal residence disposition need not complete Form 2091

On page 2 of Schedule 3 of the return for the year of disposition of a principal residence, if the individual checks the box for Case 1, there is a concern that by virtue of this effectively being a designation for all the years during which the taxpayer was owner, this could result in wasting the extra year under the “+1” computation.

No worries! CRA stated:

Box 1 may be checked to designate [the house] as the individual’s principal residence for all years (or for all years less one year). … [T]he CRA will not require Form T2091 to be completed… .

Neal Armstrong. Summary of 6 October 2017 APFF Roundtable, Q.3 under s. 54 - principal residence - para. (c).