If you’ve been trading in cryptocurrencies, you’ll be happy to know that the Canadian government has finally released their stance on crypto taxation.
And it’s good news- the taxes are exactly the same as capital gains taxes! In this blog post, we’ll go over what you need to know about crypto taxes in Canada. So read on and find out how to stay compliant with the law while still enjoying your profits from trading crypto.
To start, let’s go over what exactly capital gains taxes are.
In short, they’re a tax that you have to pay on any profits you make from selling assets. This includes stocks, real estate, and yes- cryptocurrencies. The Canada Revenue Agency (CRA) considers crypto to be capital properties, so any profits you make from selling them are subject to capital gains taxes.
Luckily, the process for paying crypto taxes in Canada is pretty straightforward. You just need to keep track of your profits and losses each year, and then report them on your tax return. The CRA has provided some helpful guidance on how to do this, which you can find here.
Basically, you need to declare all of your crypto transactions, and then use the “cost basis” of the cryptos to calculate your profits or losses.
So that’s all you need to know about crypto taxes in Canada. Be sure to stay compliant with the law and report your profits and losses accurately. And most importantly, enjoy your crypto profits!
Please note that this blog post is not supposed to be legal or financial advice, and you should always speak to a qualified accountant or lawyer if you have any questions about crypto taxation.