Fiscal period

You report your business income based on a fiscal period.

A fiscal period is the time covered from the day your business starts its business year to the day your business ends its business year.

For an existing business, the fiscal period is usually 12 months. A fiscal period cannot be longer than 12 months. However, it can be shorter than 12 months in some cases, such as when a new business starts or when a business stops.

Self-employed individuals generally have to use a December 31 year-end. If you are an eligible individual, you may be able to use an alternative method of reporting your business income that allows you to keep a fiscal period that does not end on December 31.

If your fiscal year-end is not December 31, you will need the guide Reconciliation of Business Income for Tax Purposes to calculate the amount of business income to report on your income tax return. The publication includes Form T1139, Reconciliation of Business Income for Tax Purposes. If you filed Form T1139 with your last income tax return, generally you have to file that form again for this year.

Forms and publications

• Business and Professional Income guide (T4002)
• Reconciliation of Business Income for Tax Purposes ( RC4015)
• Form T1139, Reconciliation of Business Income for Tax Purposes