Cryptocurrency Taxes in Canada: What You Need to Know
Understanding Crypto Taxation
In Canada, income from cryptocurrency-related transactions falls into the following categories:
Capital Gains
When a cryptocurrency is sold for a profit, it is considered a capital gain and is taxed as such. Capital gains are taxed at different rates depending on an individual's income and tax bracket.
Cryptocurrency as an Asset
Cryptocurrencies, such as bitcoin and ethereum, are considered assets in Canada. If a cryptocurrency is sold at a loss, it is not eligible for a capital loss deduction like stocks or bonds.
Business Income
If a person is actively trading or mining cryptocurrencies as a business, the income generated from these activities is considered business income and is taxed accordingly.
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