Reconciliation of Business Income for Tax Purposes (T1139/TP-80.1-V)

Generally, if you’re self-employed (sole-proprietor or a partner in a partnership), you need to report your business income earned from a business in Canada on a calendar year basis (that is, from January 1 to December 31). However, if your business year doesn’t end on December 31, you’ll need to reconcile your business income with the calendar year by using form T1139: Reconciliation of 2023 Business Income for Tax Purposes.

If your Québec business has a fiscal period end date that’s not December 31, you’ll need to complete the TP-80.1-V: Calculation of Business or Professional Income, Adjusted to December 31, in Québec form to calculate your business or professional income that’s adjusted to December 31.

Note: H&R Block's tax software has made it easy for you to complete the T1139 and TP-80.1-V forms by including the relevant fields within the business and self-employment income forms (T2125/TP-80, T2121, and T2042) under the Employment heading below the Credits & deductions tab.

If this is the first year of your business operations and you want a non-calendar fiscal year-end, you can elect to do so on the business and self-employment income form that applies to you.

Note: The end date of any fiscal period for your business must be the same for both your federal return and your Québec return. If you’ve filed 2023 form T1139 in order to have a fiscal period that doesn’t end on December 31, remember to also send that form to Revenu Québec.