Crypto is taxable in Canada

[ridenour]

Hey guys, one of the support managers at cryptotaxcalculator.io here. After speaking to quite a few Canadian tax residents, some didn't really understand whether crypto was taxable and what the rules around this was so I thought I'd give a bit of insight.

In Canada, crypto is treated as a commodity and is subject to tax. Just like other forms of investment, only 50% of capital gains from crypto transactions are taxable.

For example, if you have made capital gains amounting to $20,000 in a certain year, only $10,000 will be subject to capital gains tax.

Capital gain activity generally includes:

• Trading crypto for crypto (e.g., selling BTC for ETH)
• Trading crypto for fiat (e.g., selling BTC for CAD)
• Buying & selling NFTs

You also have income activity (which obvs is subject to income tax), this includes:

• Staking rewards
• Salary which is paid in crypto
• Mining crypto

Not all crypto activity is taxable though! For example, these are non-taxable:

• Buying crypto with fiat
• HODLing crypto
• Transferring crypto (no loss of ownership)
• Donations to registered charities

For more info, feel free to check out this Canadian tax guide: https://cryptotaxcalculator.io/guides/crypto-tax-canada-cra/.

Let me know if you have any questions and good luck with filing your taxes this season!

 

[felly]

@ridenour Important to note (especially in the last couple years) that you can deduct annual expenses related to mining. Because crypto prices have been so low and hardware and electricity prices have been so high, it is likely to result in a net zero for average hobby miners. But all figures must be reported nonetheless.

 

[graceinthemiddle]

@ridenour Thos will be good once I'm not deep in losses ha thanks though .