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 form to calculate your business or professional income that’s adjusted to December 31.
Generally, you have to report your business income earned from a business in Canada on a calendar year basis (that is, from January 1 to December 31). If your business year doesn’t end on December 31, you’ll need to add your business income for the period starting from the fiscal period end date to December 31, to your total business income for the year. Keep in mind that this additional amount you need to calculate to December 31 is then deducted in the following year.
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 form T1139: Reconciliation of 2017 Business Income for Tax Purposes in order to have a fiscal period that doesn’t end on December 31, remember to also send that form to Revenu Québec.
I started a new business in 2017 which has a fiscal period end date in 2018, do I need to complete this form?
Yes. You’ll need to complete the TP-80.1-V form if you’re operating your business as a sole-proprietor or a member of a partnership and one of following applies to you:
- In 2016, you carried on a business whose fiscal period ended in 2017
- In 2017, you carried on a business and its first fiscal period ended in 2017 on a date other than December 31 or
- In 2017, you carried on a business and its first fiscal period ends in 2018
Where do I claim this?
Follow these steps in H&R Block’s 2017 tax software:
Before you begin, make sure that you told us that you lived in Québec on December 31, 2017.
- On the PREPARE tab, click the IN THIS SECTION icon.
- Under Income from self-employment, a business you own, or a profession (lawyer, accountant, etc.) and related expenses (vehicle, advertising, travel, etc.), click the Add This button.
- Choose your province of self-employment from the drop-down menu that appears.
- Click the EMPLOYMENT icon. You'll find yourself here:
- Under the BUSINESS AND SELF-EMPLOYMENT INCOME heading, select the checkbox labelled Calculation of business or professional income, adjusted to December 31 (TP-80.1-V), then click Continue.
- When you arrive at the page for the Calculation of business or professional income, adjusted to December 31 (TP-80.1-V), enter your information into the tax software.