Income taxes on Cryptocurrency transactions in Canada

1
Income taxes on Cryptocurrency transactions in
Canada
https//www.maroofhs.com/tax-services-canada/perso
nal-taxes/
2
Canada taxes cryptocurrencies such as Bitcoin as
a commodity. Depending on our circumstances, the
resulting income is taxed as a business income or
capital gain on your personal income tax
return. If you hold bitcoin or other
cryptocurrencies as a Capital asset, the result
is going to be a Capital gain or loss. Such a
gain or loss is included only half in your
income. If you are running a crypto business
such as trading as a day trader and have huge
volumes of transactions, CRA will say its a
business income. Soits important to consult some
tax professional to determine if you are running
a business or holding capital assets. If you
are a cryptocurrency miner you are definitely
running a business and you can treat income as a
business income. Business income can be offset
against other business losses as well, even your
employment income.
3
When you are running a business, you are entitled
to all the deductions a business will be
ordinarily allowed. Some of these transactions
can bring down your income significantly. Your
personal income tax accountant in Canada can best
help you saving using potential deductions. A
really good post explaining how the
cryptocurrencies are taxed in Canada can be found
here. You can understand the difference between
Business income and capital gain from
cryptocurrencies. It also explains what happens
when you exchange one cryptocurrency for another
one or buy some goods or services using
cryptocurrencies. Maroof HS CPA Professional
Corporation is a Toronto based CPA firm providing
full scale income tax services in Canada. You can
utilize the professional income tax preparation
and planning in Canada here.
4
You can reach us at 3-100 Hanlan Road,
Woodbridge, ON L4L 4V8 Phone [phone] Emai
l Canada_at_MaroofHS.com https//www.maroofhs.com/c
ontact/ https//twitter.com/MaroofHS https//www
.facebook.com/MaroofHSCPA