Simplifying Crypto Tax Reporting in Canada

The Canadian Revenue Agency (CRA) classifies cryptocurrency as a commodity. This means it is subject to capital gains tax and income tax, similar to other commodities like gold or oil.

Failure to report cryptocurrency income can result in penalties and interest charges. The Canada Revenue Agency (CRA) has mechanisms to track unreported crypto transactions, especially on significant platforms and exchanges.

Yes, in Canada, you can offset crypto losses with capital gains from crypto or with other assets. However, be mindful of the Superficial Loss Rule, which prevents you from claiming losses if you or an affiliated person buys the same asset within 30 days before or after the sale.

In Canada, you can use all your crypto losses to reduce any capital gains in the same year, with no maximum limit. If your losses exceed your gains, you can carry over the excess to reduce gains in future years. Note: You cannot use these losses to decrease other types of income.

In Canada, tax rates for cryptocurrency do not vary based on the duration of holdings. This means that whether you hold crypto for the short term or long term, it will not affect your tax obligations.

The Adjusted Cost Basis (ACB) method is used for crypto tax calculations. ACB is the average cost of each unit of cryptocurrency in Canadian dollars at any given time, adjusted for any acquisitions or dispositions.

The Canadian Revenue Agency (CRA) has not issued specific guidelines on whether lost or stolen cryptocurrency can be claimed for a tax deduction. However, since cryptocurrencies are considered capital assets, similar to other capital assets, you may be able to claim a deduction for losses due to theft, following general tax rules for capital losses.

KoinX supports hundreds of exchanges, wallets, and blockchains. If your exchange isn’t listed, you can manually add your trades by creating a KoinX custom file. Alternatively, you can contact our support team at support@koinx.com or use our in-app chat feature, and we'll help integrate your exchanges.