So, CRA hasn't a clue really but still wants their cut.
I have crypto gains in excess of $150k that took place over the last few years. This is in the form of simple capital gain and passive income (staking).
Since it happened over years, I have been in and out of various exchanges, some of which don't exist anymore. Most exchanges offer little in terms of reporting tools for users, not to mention most of them are not Canadian based.
As I understand it, you don't need to pay tax until it is converted to fiat...BUT it is to be calculated on each transfer of value. This means literally hundreds of trades spanning across multiple years and multiple exchanges and multiple coins. Also including mining profits in BTC and converting to other coins. I have some data that I've compiled but no where near complete data.
On top of this I have staking rewards weekly and I'm not entirely sure if the CRA knows how to treat this.
To further complicate things, my initial investment was around $7500 cad. But this includes cash investing, mining equipment purchase, hydro for mining and other minor expenses. $7500 is the offset figure from selling the mining equipment at a reduced price. $8100 would not include that sale. No reciepts. I have hydro bills but obviously it doesn't discern how much was mining. I made those calculations myself and foolishly did not save it in a spreadsheet.
So...this is quite the cluster f***. I do want to actually use my gains and pay the tax. I don't want to piss off the CRA (I have been audited for multiple years before is it's a rather unpleasant experience). I've tried using some of the tools like coinly and beartax but it still has gaps that would cause questions.
Is it possible to scrap all the data and tell CRA that it's all capital gain, bite the bullet and pay tax on all of it, what ever calculation that is...55% or whatever it is? Meaning they will get more than what it should be.
I never really expected to have this much in gains so I didn't set myself up correctly from the start. What do I do. Did I screw myself? I have not cashed out yet. I don't have a solid plan on when I will but i want to be as prepared as possible.
I have crypto gains in excess of $150k that took place over the last few years. This is in the form of simple capital gain and passive income (staking).
Since it happened over years, I have been in and out of various exchanges, some of which don't exist anymore. Most exchanges offer little in terms of reporting tools for users, not to mention most of them are not Canadian based.
As I understand it, you don't need to pay tax until it is converted to fiat...BUT it is to be calculated on each transfer of value. This means literally hundreds of trades spanning across multiple years and multiple exchanges and multiple coins. Also including mining profits in BTC and converting to other coins. I have some data that I've compiled but no where near complete data.
On top of this I have staking rewards weekly and I'm not entirely sure if the CRA knows how to treat this.
To further complicate things, my initial investment was around $7500 cad. But this includes cash investing, mining equipment purchase, hydro for mining and other minor expenses. $7500 is the offset figure from selling the mining equipment at a reduced price. $8100 would not include that sale. No reciepts. I have hydro bills but obviously it doesn't discern how much was mining. I made those calculations myself and foolishly did not save it in a spreadsheet.
So...this is quite the cluster f***. I do want to actually use my gains and pay the tax. I don't want to piss off the CRA (I have been audited for multiple years before is it's a rather unpleasant experience). I've tried using some of the tools like coinly and beartax but it still has gaps that would cause questions.
Is it possible to scrap all the data and tell CRA that it's all capital gain, bite the bullet and pay tax on all of it, what ever calculation that is...55% or whatever it is? Meaning they will get more than what it should be.
I never really expected to have this much in gains so I didn't set myself up correctly from the start. What do I do. Did I screw myself? I have not cashed out yet. I don't have a solid plan on when I will but i want to be as prepared as possible.