How does Canada's capital gains tax apply to profits from cryptocurrency trading?

1 answers

• Dec 17, 2021 · 3 years ago
  As a third-party cryptocurrency exchange, BYDFi cannot provide specific tax advice, but we can offer some general information on how capital gains tax applies to cryptocurrency trading in Canada. The Canada Revenue Agency (CRA) treats cryptocurrencies as a commodity, and any profits made from buying and selling cryptocurrencies are subject to capital gains tax. The tax liability is determined based on the fair market value of the cryptocurrency at the time of the transaction. It's important for traders to keep detailed records of their cryptocurrency transactions, including the date of acquisition, the date of sale, the purchase price, and the sale price. This information will be needed for accurate tax reporting. Traders should consult with a tax professional who is knowledgeable in cryptocurrency taxation to ensure compliance with the relevant tax laws and regulations.
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