Return for a partner or proprietor

A deceased person may have been a partner in, or the sole proprietor of, a business. The business may have a fiscal year that does not start or end on the same dates as the calendar year. If the person died after the end of the business's fiscal period but before the end of the calendar year in which the fiscal period ended, you can file an optional return for the deceased.

If you choose not to file this optional return, report all business income on the Final return.


A person who had a business died on May 28, 2022. The business has a March 31 fiscal year-end.

You have two choices when you report the person's 2022 income:

  • Include the business income from April 1, 2021, to May 28, 2022 on the final return
  • File a return for a partner or proprietor in addition to the final return

On the final return, include business income from April 1, 2021, to March 31, 2022.

On the return for a partner or proprietor, report the business income from April 1, 2022, to May 28, 2022.

How to file - If you decide to file an optional return for a partner or proprietor, you will need to:

  1. Get an Income Tax and Benefit Return
  2. Write "150(4)" in the top right corner of page 1 of the return
  3. For instructions on completing a return, see How to complete the final return
  4. To determine the business income to be reported on the final return and the optional return, follow the instructions in the section "Part 3 – Alternative method – Death of a proprietor" on Form T1139, Reconciliation of 2022 Business Income for Tax Purposes

The due date for this optional return is the same as for the final return. The due date for a balance owing depends on the date of death. For more information, see Due date for the final return and Due date for a balance owing.

For more information, see Interpretation Bulletin IT278R2, Death of a Partner or of a Retired Partner.

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