Yes. The Canada Revenue Agency (CRA) is clear that crypto is subject to Income Tax. You'll pay Income Tax on half of any crypto gains from dispositions of crypto, as well as Income Tax on any additional income from crypto - like staking or being paid in crypto.

The purchase of a non-financial asset (NFT) is not taxable. Selling an NFT, on the other hand, is a taxable event regardless of whether you made the NFT or are selling something you bought before. You can be taxed in two ways depending on how your NFT is structured. This is quite possible that you are creating your own NFTs. The creation of NFTs gives rise to a further question if you are creating an intangible asset that is generating the income. In such a case rules related to the creation of intangibles come into play. If you trade NFTs, your trading behaviour dictates whether its generates business income or capital gains (or losses).

There is no specific Capital Gains Tax rate in Canada. You'll pay your usual Federal and Provincial Tax rate on half of any capital gain.

Reach out to us and we can tell you the rate you’ll pay depending on your income bracket.

Yes, Bitcoin is legal in Canada, as well as other cryptocurrencies. However, crypto exchanges must meet stringent operational requirements in order to operate in Canada.

Yes - Bitcoin mining is legal in Canada and tax free upon receipt for hobby miners! For those mining as a business, you'll pay Income Tax upon receipt and upon disposition.

Yes. Bitcoin, Ether, Cardano, Solana and whatever else you're investing in are all taxable. The specific kind of cryptocurrency you hold does not matter to the CRA. All cryptocurrencies are taxable.

If the NFT artist, NFT content creator, or NFT art dealer operates the business through a corporation, the corporation must file a T2 Corporation Income-Tax Return within six months from the end of its taxation year. (A corporation may have an off-calendar tax year coinciding with its fiscal period.)

The corporation's tax owing must be paid within two months after the end of its taxation year. But if the corporation qualifies for the small business deduction, it may delay payment by a month—i.e., the tax owing is due within three months after the end of the corporation's taxation year.

If the NFT artist, NFT content creator, or NFT art dealer operates the business as a sole proprietor (unincorporated), the individual must file the year's Canadian T1 General Income-Tax Return by June 15th of the following year. But the tax must be paid by April 30th. (Otherwise, interest starts to accrue.) In other words, the tax is payable about a month and a half before the tax return is due.

Are you feeling more than a little confused by NFT taxes?

A qualified Capex CPA will guide you through the process. In addition to helping you audit-proof your records, they’ll show you how to track NFT gains/losses and advise you on how much to set aside for taxes.

Given how new NFTs are, if you’re investing in them, or creating them, it’s best to trust a professional to help you to deal with any of the taxes you will end up paying.

The professionals at Capex CPA understand both how NFTs work and how these assets work with the Canadian tax code.

If your reading this. You have already found the right one. Just email us and we’ll hook you up.

Certain things should be taken into consideration when looking for a qualified cryptocurrency accountant in Canada. Firstly, they should be able to explain how cryptocurrencies work and how they’re taxed. They should also be able to explain the different types of crypto assets and their tax implications.

Secondly, they should understand how to calculate your capital gains or losses on your crypto investments and how to best report them on your taxes. They should also understand how to calculate your income tax on your cryptocurrency investments.

Thirdly, they should be able to provide you with a detailed breakdown of your capital gains or losses on your cryptocurrency investments. This will allow you to see exactly how much money you made or lost on each transaction. It will help you determine whether you have any taxable capital gains or losses at all.

Yes. You'll pay Income Tax on any money you make from crypto - either on the entirety of any business income or on half of any capital gain.

The CRA doesn't take to tax evasion or fraud kindly - and not reporting, or under reporting your crypto gains and income - and you can face a fine of up to 200% of the taxes evaded and up to 14 years in prison. Find out more about crypto tax evasion by doing a discovery call with us.

Holding cryptocurrency is not taxable in Canada and therefore in many instances you won't need to report it on your taxes. However, there are a couple of specific exceptions to this rule - like if you held foreign assets (other than crypto) - over $100,000, then you may need to report the value of all your foreign assets including crypto assets. For the majority of investors though, you won't need to report crypto you hold to the CRA.

You will have to report when you sell on Schedule 3.

The Canadian tax year runs from the 1st of January to the 31st of December every year, with tax returns due by the 30th April every year.

Yes - We only accept 2. Bitcoin and Ethereum. Please reach out to us for our Wallet address.

It’s random and decided by the great supercomputer at CRA. There are certain ratios and incorrectly filed forms and calculations that generally will result in an Audit.

We do not promise any client that you will not be audited.

We do promise that we are capable of handling any CRA Audit.

https://capexcpa.com/craaudits

Yes of course you can. Similar to how you can give yourself a haircut. Yet you choose to go to a barber. When you do get Audited please book us in =) —> https://capexcpa.com/craaudits

Generally, possessing or holding a cryptocurrency is not taxable. There can be tax consequences when you do any of the following: Sell or make a gift of cryptocurrency, trade or exchange cryptocurrency including disposing of one cryptocurrency to get another cryptocurrency.

You need to report your crypto sales by calculating the adjusted cost basis and the sale of the underlying digital asset. So, if you bought $100 ETH and sold it for $150 then you will have $50 in capital gains income which is 50% taxable being $25. This $25 will be taxed based on your income tax brackets. If you buy and sell on a regular basis like a Crypto Trader, then the entire $50 is taxable and is reported as business income.

The sale or “disposition” can be considered taxable as Schedule 3 Capital Gains taxes or T2125 business income taxes. The movement of one crypto into another crypto is considered a disposition. The classification depends on the frequency of sales and purchases. We will review the details based on your Ledger and exchanges.

You need either Schedule 3 Capital Gains/Losses or you need Schedule T2125. This really depends on how your crypto income is classified and requires a professional opinion.

Crypto currencies crash and if you choose to sell then you are locking in your unrealized losses into capital losses. These losses can be offset against your capital gains. There is a strategy called “Tax loss harvesting” which lets you sell your losing positions to reduce your overall tax position. You can buy these cryptocurrencies in the new year again later to reposition at a lower adjusted cost basis.

There is a place for both Fiat currencies and Crypto. Cryptocurrencies will have mass adoption over the long term. There was a big transition gap between humans moving from Bartering goods and services to Gold/Silver. This eventually moved to Fiat currency.

You must zoom out. Cryptocurrencies are a roller coaster. If your risk tolerance is very low it is not recommended to invest. Crypto assets should be “Hodl’ed” for a minimum of 5 years to see any capital appreciation.

You can do your own crypto taxes if you understand how to do your tax filings. Generally, it’s better to hire a professional to have that peace of mind.

Crypto is Tax-free in Canada when you buy the crypto or mint an NFT and it sits in Inventory. The only time taxes come into effect is when you choose to sell or dispose of digital assets.

You will have to report your Crypto using your Personal T1 Tax return on Schedule 3 or Schedule T2125 depending on your income categorization.

You can’t really put crypto on a tax return. You can report your crypto sales.

No. You can’t use Crypto to pay taxes.

Yes. Owing cryptocurrencies is legal in Canada.

Yes. Cryptocurrency gains are taxable in Canada whether it is Capital Gains tax or a Business income tax. This classification depends on your frequency of trading.

Buying and holding Cryptocurrencies are not taxable. The sale of cryptocurrencies and other digital assets like NFTs is taxable. The key is if the asset has been “disposed of”.

The price increases from cryptocurrencies do not trigger taxes. The sale of the crypto assets does.

Crypto Canada Tax Reddit is a great community and has many brilliant minds in it. However, when seeking Tax advice it’s best to hire professionals. This is because professional CPAs have been trained in taxes for many years. It’s worth the call to understand your tax needs better.

You can’t own pure crypto assets like Bitcoin or Ethereum inside your TFSA however you can buy an ETF that follows the price of Bitcoin and Ethereum. You have to do your own research when buying this within your TFSA as the premium management fees for the ETF can be high.

The Canada Revenue Agency has provided a guide on how to handle Cryptocurrencies. Here is the link https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/digital-currency/cryptocurrency-guide.html

You will need Schedule 3 and Schedule T2125.

a. A superficial loss is when you dispose of capital property for a loss and both the following conditions are met.

i. You buy the same identical digital asset during the period starting 30 calendar days before the sale and ending 30 calendar days after the sale.

ii. You or a person affiliated with you still owns or has the right to buy the digital property within 30 calendar days after the sale.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/capital-losses-deductions/what-a-superficial-loss.html

You need to calculate the gains and income generated from crypto. https://koinly.io/canada/

You will need to prepare a personal income tax return and then add to Schedule 3.

Only if you choose to sell the crypto or exchange it for another crypto. The movement between Bitcoin to Ethereum is a disposition of one asset for another which is considered a disposition.

Cryptocurrency is getting more consumption. Some vendors will accept Crypto for a service or product. Such as we accept Bitcoin or Ethereum in order to help prepare your Crypto Tax returns.

The cryptocurrency exchanges are administrated by the Canadian Securities Administrators

If you have a SIN number in Canada and are over the age of 18 you are required to file your taxes every year by April 30th.

Yes, this depends on what you did with it. If you just Hodl the Crypto than there is no taxation.

A professional CPA can prepare a corporate tax return or a seasoned tax preparer. It’s a specialized skillset that requires a deep understanding of crypto and corporate taxation.

This depends on what your current tax bracket is. We can do a in-depth review of your income brackets and estimate your tax owing.

The Canada Revenue Agency can audit any taxpayer in Canada. The only way to defend against any Audit is to have very detailed good records.

The best defense against a CRA audit is to keep deep records of the buys and sales of your crypto assets.

We prepare all Crypto tax returns with the mindset that they will be audited which ensures that if there ever was a Cryptocurrency audit we can defend our clients to the CRA.

If having CRA protection is important o you please ensure you subscribe to the crypto CRA audit protection package.

No. Keep your crypto in your cold wallet.

Crypto Tax returns are due on April 30th of each year.

Yes, this is a good practice to avoid going to jail for 14 years and avoiding 200% penalties for tax evasion.

This is how you give us access to your Koinly:

1. Log in to your Koinly account and go to Settings in the top right corner

2. Click on Team on the left-hand side

3. Click Invite, add in the email address and press Send invite

https://help.koinly.io/en/articles/5811563-how-to-invite-your-accountant-to-koinly