How does the Canadian tax system treat cryptocurrency earnings?

1 answers

• Thyssen McHughMay 17, 2021 · 4 years ago
  Earnings from cryptocurrency in Canada are subject to taxation. The Canadian tax system treats cryptocurrency earnings as either business income or capital gains. If you are actively trading cryptocurrencies as a business, the income is considered business income and is taxed accordingly. On the other hand, if you are holding cryptocurrencies as an investment and sell them at a profit, the gains are treated as capital gains and are subject to the capital gains tax. It's important to keep track of your transactions and report your earnings accurately to comply with the tax laws. If you have specific questions about your situation, it's advisable to consult with a tax professional who is familiar with cryptocurrency taxation in Canada.
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