Crypto Tax in Canada

Jesus Christ, us leafs are gonna get fucked on taxes just like the Americans.

business.financialpost.com/technology/blockchain/if-you-sold-or-used-bitcoin-last-year-the-cra-needs-to-collect-its-due

>"As well, if someone used Bitcoin to purchase another cryptocurrency, such as Ethereum, he or she would be considered to have sold the Bitcoin for its value in Canadian dollars at the time of the transaction, said Elgar."

AAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAAAAAAAAAAAA

Other urls found in this thread:

luxurybranded.com/bitpremier-bitcoin-marketplace/
reddit.com/r/Bitcoin/comments/7ujq3z/we_are_three_cpas_ready_to_answer_your_taxrelated/
dwpv.com/assets/-/media/F28E60C148DB463DB31E0CF66008FD2A.ashx
canada.ca/en/revenue-agency/news/newsroom/fact-sheets/fact-sheets-2015/what-you-should-know-about-digital-currency.html
theglobeandmail.com/globe-investor/personal-finance/taxes/some-basic-answers-to-the-tax-implications-of-cryptocurrencies/article37749902/
canada.ca/en/financial-consumer-agency/services/payment/digital-currency.html
twitter.com/NSFWRedditGif

>Alts considered CAD

I guess they won't mind if I pay the taxes in Doge then?

You didn't think the openly marxist plutocrats would actually let you keep your money, did you user?

PAY

YOUR

TAXES

when you get ass raped by the taxman, you win :^)

>>"As well, if someone used Bitcoin to purchase another cryptocurrency, such as Ethereum, he or she would be considered to have sold the Bitcoin for its value in Canadian dollars at the time of the transaction, said Elgar."

this is bullshit

Fuck

How can they even claim this.

You retards. Actually taking 4chans advice on taxes. Go to h&r and ask them about it. You cannot LOSE money on taxes. You'll never have less than you started with and stupid articles like this and bad quotes make it sound like you can. You can't.

Because it's considered a commodity. If you trade a commodity for a commodity when the FMV is increased, then you realized a gain. Other wise people who bought crypto for really cheap can just not cash out and buy houses and lambos tax free.

>You'll never have less than you started
I want every cent though

That's the same deal that the burgers got right?

You can indeed lose money with taxes if you had a big capital gain in December, and then in January you lose a shit ton of money in the crash. You still owe those December gains.

buying something with bitcoin is considered bartering
>still taxed

only taxed when you make a trade
>miners get taxed even if they Dont sell

What am I reading

KILL

YOUR

SELF

Thank God I live in a Caribbean country where hardly anyone cares about crypto and we only have a VAT tax for actual products and services

Any country that doesn't institute taxes on FMV of bitcoin or gold effectively has a loophole where their whole fiat and taxation system is open to destruction. Think about it, people could trade all their fiat for bitcoin or gold an do all their business in bitcoin or gold and receive their salary in bitcoin or gold and have no need for the country's fiat money. The only thing that keeps it alive is that you're FORCED to use it to pay taxes.

This. FINALLY someone here understands it.

>Just get a tax accountant or lawyer user
I don't want to pay thousands for that jew shit.

But I haven't realized a gain at all because of something like this

Bro you have to contribute to your country. Think about all the third world migrants and single moms that want your hard earned money. Have you no conscience?

There's no way they can track your alt trades, especially since most exchanges don't even require KYC.

See that doesn't make sense. Because I get all kinds of airdrops on hundreds of accounts but it's really not possible to determine anything about them. Who really owns them, if I can even sell them for cash, their value, etc. It's not possible to tax that kind of thing.

I understand that the gov is looking out for itself but its rules are bullshit. The miners thing is really dumb (I Dont even mine).

No thats the meme, we just pay capital gains tax which is super fucking high.
but your dumb ass cannuk government actually bought into the Veeky Forums meme lol.
You can't even overthrow treadu either no gunz

you would have to sell in dec to realize that capital gain and then you would claim that jan loss against the new year's income. you can't lose

lmfao absolutely not.

Stop posting articles that were initially posted by the drooling niggers and feminists at HuffingtonPost.

You don't have to sell, you only have to trade, in order realize that gain in FMV.

>“You are trading one good for another and you uptraded, so you gained in value,” said H&R Block senior tax professional Valorie Elgar.

This makes zero sense unless you're ripping someone off in a P2P trade the value of the btc/alt pair is going to be equal at the time of the trade. There is no "uptrade".

Considering I'm a recent CPA in Canada, I know this is wrong. Only when converting to fiat have you made a taxable transaction. Crypto to Crypto is not taxable, only Crypto to fiat. I specifically went over this with my Taxation module teacher who contracts for the Government.

They care about the cost basis of the coin. If you buy 1 bitcoin for $1,000 and then after it appreciates you trade it for $10,000 worth of ETH, then the FMV of the trade is $10,000. Capital gains is FMV - Costbasis. So $10,000 - $1,000 = $9,000.

you dont understand taxation, you cant realize a gain by holding something in Canada. Personal taxation only applies to actual fiat income earned/ realized from selling.

If this is wrong, I'm moving to Canada because you have a loophole to circumvent taxation entirely.

Depends on your definition of holding. In the US if you trade BTC for ETH you didn't hold, you made a transaction. Or if you trade BTC for a lambo, you didn't hold you made a transaction.

If in Canada, trading BTC for ETH is not a transaction, and trading BTC for a lambo is not a taxable transaction. Then I am moving to Canada and doing all my business transactions in Crypto or Gold, avoiding ever converting to CAD, completely bypassing taxation.

no one cares about the US you also lock people up for not paying tax or child support you nigger haters

This part is up for grabs, CRA defines it as a barter, they cant actually track any of that information so I can just use the trades as my cost basis. If I sell to fiat my cost base just includes the unrealized gains from the BTC to ALT transaction, so I'll pay tax once I cash out. CRA knows its impossible to track my actual trading but not my bank activity in terms of an audit.

What if made all bad trades?

Is there a easy way to see the exact price of BTC at a specific time this past year?

You have a VERY attractive option for Money Laundering then. All a drug dealer has to do is convert his money into BTC and say he made his fortune trading crypto. Then he can buy goods and services with his BTC tax free or he can covert to CAD, pay tax and say whatever cost basis he feels like.

I have mad USDT gainz, that's considered an alt right?

Capital loss.

They have guns
You're in the minority
Normies don't care

>paying taxes

lmao

How would crypto be held in RRSP and TFSA, if Trudeau let us ?

I have a bunch of Canadian Tax articles regarding crypto. Anyone interested?

>he can buy goods and services with BTC

how exactly

>I have a bunch of Canadian Tax articles regarding crypto. Anyone interested?
Yes, please proceed

You're misunderstanding you need to act in good faith. When I filed I included the trade info for my cost basis to back up how I got the ALT vs the BTC price I paid for it. All acting with the CRA in bad faith will get you fucked over but you could theoretically live off of crypto without an audit being possible because they truly cannot track that activity unless you're casing into a Canadian bank account.

Are you saying that's impossible? If you leave open such a wide loophole that buying goods and services with BTC are not taxed, then market places will arise, people will cut deals. Why would a crypto-millionaire ever want to convert to CAD? There's all kinds of places that accept crypto as payment already like the Lamborghini dealerships.

luxurybranded.com/bitpremier-bitcoin-marketplace/

Retard.

reddit.com/r/Bitcoin/comments/7ujq3z/we_are_three_cpas_ready_to_answer_your_taxrelated/

prep that boipussy

The CRA is basically in a position to just sit back and accept the tax you're willing to pay for what has hit your bank. They are so understaffed and under paid that they arent deluded enough to think they could actually track peoples crypto trading.

>tfw i cashed out 5 times within 8 months

i'm gonna get rekt am i

Seconded.

>there are retards that not only lost all their money with the crash, but will end up indebted to the government in taxes for years
jaj

You don't pay taxes on losses dummy

No, you don't have to act in good faith. If the CRA says you don't have to track any of your trades, then your taxes are whatever you say they are.

I think the biggest misunderstanding is actual fair value, something like Crypto cant have a fair value like real assets when its entirely speculation and isn't liquid, maybe ETH and BTC you could argue have liquidity but Alts do not have any real value that a tax court would support if you challenged the gain falsely created by trading. This isnt a typical asset class and with the swings and crashes would not be considered an asset tied to its "market value" like a security on an actual licensed and regulated exchange.

You need to be able to prove your cost base, with trade records as backup for your filing. Unless you never cash out

Its a fair thought that its taxable to trade crypto to crpto because there are increases in value but they are superficial, IMO as someone who has completed the CPA tax module, any gains or losses with Crypto until cashed to fiat are superficial as the value fluctuates beyond any comparable asset class.

Oh ok, so you do need to track every trade. A moment ago I thought you said the CRA recognizes it's impossible to do all that, just pay a percentage of whatever you cash out.

Not in canada

So when is someone going to make a crypto casino that I can launder my gains with?

If the only requirement is "pay a percentage of whatever you cash out". Then that's money laundering heaven.

I mean they recognize they cant actually come after you for your trades because of international exchanges and the complexity of finding your details but if you wont act in good faith to prove the cost base on your gains cashed to fiat you will 100% get audited if you report crypto income.

dwpv.com/assets/-/media/F28E60C148DB463DB31E0CF66008FD2A.ashx

canada.ca/en/revenue-agency/news/newsroom/fact-sheets/fact-sheets-2015/what-you-should-know-about-digital-currency.html

theglobeandmail.com/globe-investor/personal-finance/taxes/some-basic-answers-to-the-tax-implications-of-cryptocurrencies/article37749902/

When can we lock all our trades in a Smart Contract, to defer taxes?

>When can we lock all our trades in a Smart Contract, to defer taxes?
No, you don't have to do any of that, according to this guy.
Apparently all your taxes are already deferred until you cash out and there's no taxes for buying goods and services with your crypto. Canada is heaven for the crypto trader if what he is saying is accurate.

>Apparently all your taxes are already deferred until you cash out and there's no taxes for buying goods and services with your crypto. Canada is heaven for the crypto trader if what he is saying is accurate.
Sources are still needed

Thanks man, leafs4lyf

Stupid reason. You don't buy houses and lambos until you have actual cash.

No, there would be an extreme demand for goods and services paid for in crypto if there is no tax incurred to the buyer in the form of capital gains, and the market would meet it.

Does anyone know if you can still get fucked by taxes if you send ETH to QuadrigaCX, convert to fiat, then convert straight back to ETH after the crash?

You could also trade for gold (another commodity). And pay no capital gains. That sounds too good to be true to me but if you follow the logic that commodity to commodity trades are not taxed until exchanged for cash, that's the outcome.

>would be

and that day is not today.

all you have to do is pay capital gains, no1 else cares about the trades and other shit just report how much u put in and how much ur taking out and pay capital gains on it, simple. Only cucks do otherwise

There's no possible way this is true

Well it's already true today that there's online retailers of gold that accept crypto as payment. If commodity to commodity trades are not taxed on FMV then you can realize all your gains in gold or silver and pay no taxes because you didn't cash out technically. Is that right?

Goods purchased using digital currency must be included in the seller’s income for tax purposes. GST/HST also applies on the fair market value of any goods or services you buy using digital currency.

If nothing is linked to ID, and traded XMR, how would they possibly know the buy price? Like, you know, I don't even remember the buy price!1one I bought and sold at EXACTLY the same price!1one

Anywho, I derped and sold some to people online for etransfers

But NO capital gains tax for the buyer. Just the GST/ HST whatever that is?

See what I'm trying to get at here? IF all digital currencies are classed as commodities, same as gold.

IF capital gains tax is charged on the fair market value - cost basis when you trade your crypto for gold. Then it logically follows that all your crypto trades (which are also commodity trades) also triggered capital gains.

IF capital gains tax is not levied then, congrats you get to cash out all your gains in precious metals TAX FREE. That's amazing! congrats canadians!

Yes, it seems pretty vague but thats what it says here: canada.ca/en/financial-consumer-agency/services/payment/digital-currency.html

When you end up selling the gold you bought with BTC you'll pay capital gains on that.

Don't pay taxes, problem solved. The Canadian government can lick my hairy ass.

Would you still get fucked by taxes if you send ETH to QuadrigaCX, convert to fiat, then convert straight back to ETH after the crash?

yeah fuck taxes jesus...

anyways, for when the bulls are back

If you got shill skills

join discord @ ytpvyF9

In my opinion that's still really good because you could defer tax indefinitely but still store the value of your gains in Precious Metals.

Can I just give my money directly to ISIS and cut out the Canadian Government Middleman isis funder?

>cashing out

Fucking Veeky Forumstards.

Just fucking wait until you can buy shit with crypto. That's 2 years, maybe 3 at most. Cashing out to fiat is just asking to lose 20-30% of your money.

Okay, say I only pay the GST/HST on my gold. Then what? Could I actually buy property in straight gold? I feel like it doesn't change too much

But that sounds too good to be true so I'm going with the more likely scenario that it's this:

>“You are trading one good for another and you uptraded, so you gained in value,” said H&R Block senior tax professional Valorie Elgar.

If there's hundreds of thousands of dollars I'm saving by not paying Capital Gains tax, then I'll find a way.

Not if your cash outs were under 10k . If they were over you might. That's why you just multiple sub 10k withdrawals and fuck paying the tax

Yeah that's fair, does seem like a decent option. I would rather explore the gambling earnings route. Maybe do both who knows, not planning on cashing out atm

why i keep my skin in the game. and if i need some cash i just hit a btc atm. fuck these niggers only shitty thing is ill hafta prob pull my alts off exchanges i fuck with and just store hodl. til i can leave this shithole

I've done the same thing. If quadrigacx doesn't realise your trade info the CRA you should be fine until you cash out to the bank

So I've been buying silver slowly with alt coins, how the hell do I pay taxes on the transactions made? Like what info do I need to provide my tax guy?

And no I don't plan on selling the silver. It's looks nice and it fills my display case nicely.

>government wants to rape me with taxes for trading monopoly money
Wtf i thought crypto was DECENTRALIZED how can they do this

No we just pay 20% on our gains only after withdrawing

Canadian here.
Fuck this country and the liberal party. Here's to the next recession.

more guns per capita here than in the states you illiterate fucking burgermutt
we just don't have a bunch of rednecks jacking off over fantasies of overthrowing le ebil goberment who wants our precious tax dollars