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CRA Digital Currency Guide

The CRA generally treats cryptocurrency like a commodity for purposes of the Income Tax Act. Any income from transactions involving cryptocurrency is generally treated as business income or as a capital gain, depending on the circumstances.

Some examples of cryptocurrency businesses are:
  • cryptocurrency mining
  • cryptocurrency trading
  • cryptocurrency exchanges, including ATMs
 

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If cryptocurrency mining is considered business income, then I suppose cryptocurrency staking is as well

If the rewards and gains weren't claimed or disposed in 2020, do I still claim any expenses and carry them forward?
 

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How can I avoid paying tax on Cryptocurrency?
 

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Tough question...

Back when I mined, I never claimed expenses or income. I think this qualified as "hobby mining". However, this was many years ago. Now, assuming I never sold until now, my cost base is 0 for those coins I mined.

When it comes to staking I'm not sure of the technicalities...

I have a feeling this tax season is going to be a gong show. The CRA is not really acting in their best interest by enforcing such onerous rules. So many people have no clue and think they only have to pay taxes when they cash out to fiat. The costs to enforce this are going to outweigh any extra revenue.
 

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Tough question...

Back when I mined, I never claimed expenses or income. I think this qualified as "hobby mining". However, this was many years ago. Now, assuming I never sold until now, my cost base is 0 for those coins I mined.

When it comes to staking I'm not sure of the technicalities...

I have a feeling this tax season is going to be a gong show. The CRA is not really acting in their best interest by enforcing such onerous rules. So many people have no clue and think they only have to pay taxes when they cash out to fiat. The costs to enforce this are going to outweigh any extra revenue.
Well you normally don't have to pay any tax on gains until you realize them

The long term issue is if they don't figure out how to tax crypto transactions like other transactions, it will create a tax loophole, which people will exploit.

The big issue is that as politicians try to push taxes ever higher, tax avoidance is easily one of the most important parts of portfolio management. To be clear i'm talking about legal tax avoidance, not illegal tax evasion.
 
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