You may have tried to find out how your crypto mined needs to be taxed, but to no avail, there is limited information online. That is because the tax law around crypto is still being developed and mainly CRA guidance is available which seems too vague and doesn’t seem to provide enough details that encompass the complexities of the crypto world.
However, with tax season rolling around, we need to report our taxes and the best we can do is to report a resonable position based on current tax legislatution and guidance. I’ve compiled the various CRA guidances and interpretations, as well as end with what I believe to be a reasonable reporting positon so make sure to watch until the very end!
01:00 Overview & CRA views
03:04 Lifecycle of Crypto
03:14 Earning Crypto
04:20 Holding Crypto
07:30 Utilizing Crypto
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► TAX MANAGER EXPLAINS | Crypto Taxes for Beginners 2021 https://youtu.be/cX4exvkK8ZU
► TAX MANAGER ANSWERS Crypto Tax Frequently Asked Questions https://youtu.be/u3-ESlDUpqk
► TAX EXPERT EXPLAINS Crypto Mining Tax – Hobby vs Business? https://youtu.be/NDk80HhbCl8
► TOP 5 GROWTH ETFs for Canadians | TFSA RRSP Passive Investing 2021 https://youtu.be/S8AtC1MPrBA
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► TAX MANAGER EXPLAINS Investment Accounts in Canada | Tax Free vs. Tax Deferred vs. Taxable Accounts https://youtu.be/KEACEMqEuh4
► Investing in Stocks, Cryptocurrencies, Real Estate | Investments I Wish I Had Made in My Early 20s: https://youtu.be/hfags8y5IsQ
WHO AM I:
Gabrielle is a CPA in both Canada and the US, and had worked as a Tax Manager at one of the Big 4 Accounting Firms for 7+ years. Gabrielle is now the founder of Balance + Wealth CPA, a licensed CPA firm that specializes in tax. Gabrielle posts weekly videos on Everything Money, focusing on personal finance topics such as budgeting, saving, investing, and tax tips.
► CRA website on Crypto: https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/digital-currency/cryptocurrency-guide.html
► CRA website on Inventory Valuation: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/it473r/archived-inventory-valuation.html
► John Oakey, Myles Bilodeau, and Michael Brown, “Decrypting the Taxation of Cryptocurrency Mining,” in 2018 Atlantic Provinces Tax Conference (Toronto: Canadian Tax Foundation, 2018), 2:1-52.
Disclaimer: Please note this video is not tax advice. Consult your tax advisor on the specifics of your situation so they are better equipped to determine your tax liability. Refer to the CRA website for more guidance on taxes related to crypto.
*This description contains some affiliate links, meaning that I may earn a minimal commission if you click through and use these links (at no additional cost to you).
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