Crypto Taxes in Canada Explained Very Simply

I see more and more crypto tax Canada related questions in this community so decided to do a quick simple breakdown that works for most traders.

The Basic Rule: Canada treats crypto like stocks - you pay tax when you sell/trade for a profit.

Simple Example:

• You buy 1 Bitcoin for $30,000 CAD in January
• You sell it for $40,000 CAD in December
• Your profit = $10,000
• You pay capital gains tax on 50% of that profit = $5,000
• If you're in a 30% tax bracket, you owe $1,500 in taxes

Note: Include transaction fees (e.g., exchange fees) in your cost (called Adjusted Cost Base, or ACB) to reduce your taxable gain.

Crypto taxable events in Canada:

• Buying crypto = No tax
• Holding crypto = No tax
• Selling for profit = Tax on 50% of gains
• Selling for loss = You can claim the loss to reduce other gains
• Trading crypto-to-crypto = Also taxable (treat it like selling)
• Mining, staking, or airdrops: Treated as income (100% taxable) at the FMV when received. Later sales trigger capital gains/losses.

What You Need to Track:

• Date of purchase
• Purchase price in CAD
• Date of sale
• Sale price in CAD

Important Tips:

• Keep records of EVERYTHING
• If following manually is too much of a hustle, Use apps like Koinly (it's like TurboTax but for crypto in Canada). They gave our community 10% off the price via this link.
• If you're day-trading frequently, CRA might consider you a business (different rules)

Not financial advice - consult a tax pro if you're dealing with big money.

Official source for your reference: https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/cryptocurrency-guide.html

Hope this helps.