Crypto Gains Can Come With Hefty Taxes

[poker]

Crypto gains can come with a hefty — and unexpected — tax bill

'It's not as straightforward as buying some stock' says cryptocurrency tax expert Mehran Sedigh

financialpost.com

“One part that (clients) struggle with is how we calculate the gains and losses,” he said.

The CRA generally treats cryptocurrencies as a commodity in the Income Tax Act, according to the agency’s website. Depending on the filer’s case, income gained from crypto transactions are either categorized as capital gains or business income.

 

[|2 /-\ | /|/]

yeah not much of this is new especially the trading part but I agree it’s important to keep track of all your transactions and file them monthly. With crypto and wallets and this info being on blockchain it’s available for anyone to track down where the funds came and where they originated when wallet was first created etc.

With crypto here always be prepared to justify all your transaction and keep everything clean.

 

[Ceiling Cat]

If you are taxed left and right, count that as a blessing. It means you are making money hand over fist. In stocks, forex and crypto you can not cheat the government, They know what money you have made before your profits hit your account after a trade.

 

[guyfromtdot]

If you are taxed left and right, count that as a blessing. It means you are making money hand over fist. In stocks, forex and crypto you can not cheat the government, They know what money you have made before your profits hit your account after a trade.

I'm shielding my profits in El Salvador where crypto is taxed at 0%

 

[fall]

I'm shielding my profits in El Salvador where crypto is taxed at 0%

I hope by "shielding" you mean you have a corporation registers in El Salvador and all gains are kept there in that corporation. Because if you simply use El Salvador account or if you spend any money you made there or if you transfer any money from your corporation to a personal account (does not matter in which country) and you did not declare them as income in your T1 form, then you are not "shielding your profits", you are cheating on your taxes.

 

[glamphotographer]

I have .0000186893 bitcoin about $10 CAD, CRA coming after me for it?

 

[guyfromtdot]

I hope by "shielding" you mean you have a corporation registers in El Salvador and all gains are kept there in that corporation. Because if you simply use El Salvador account or if you spend any money you made there or if you transfer any money from your corporation to a personal account (does not matter in which country) and you did not declare them as income in your T1 form, then you are not "shielding your profits", you are cheating on your taxes.

This is exactly what I mean,

 

[fall]

This is exactly what I mean,

Good for you. You understand that you cannot legally spend these money without paying Canadian income tax, right? What is your tax strategy for the future?

 

[Sunlight]

Cryptocurrencies that you buy, sell, mine, or use to pay for things can be taxable. Also, if your employer or client pays you in bitcoin or other cryptocurrencies, that money is taxable income. I bought Bitcoin about a year ago and when it came to taxes, I didn't know what to do. Fortunately, there are tax services that help people like me to figure everything out. I had a great experience with Turbotax. This is a tax preparation software to file taxes online. You can file your simple federal and state taxes for free. And one important thing is that the turbotax customer service by link works well. Has anyone tried similar services? If yes, what was your experience?