Buying cryptocurrency is not a taxable event, but the purchase of cryptocurrency does affect the adjusted cost base of your cryptocurrency that should be recorded for tax purposes.Create an Account
Updated: March 30, 2021
Owning and holding cryptocurrency is not a taxable event. Watching the rise and fall in the price of a particular coin or token, or the market as a whole, has no tax effect until a taxable event occurs with that particular coin or token.
Moving a particular cryptocurrency between exchanges or between your wallets is not a taxable event. However, there is usually a fee associated with transfers. Fees should be tracked because it will be a deduction to the overall gain or loss when you do sell a particular coin or token.
Some examples of transfers without a taxable event are:
There are no special reporting requirements to the CRA that you are holding cryptocurrency.
Crypto Taxes: Buying & holding
Buying cryptocurrency is not a taxable event
Crypto Taxes: Selling & trading
The sales of crypto must be reported to CRA
Proceeds minus the average adjusted cost base
All crypto gains and losses are reportable
Keep records of your cryptocurrency transactions
Capital gains and losses vs. Business income
The purchase of cryptocurrency does affect the adjusted cost base of your cryptocurrency. Each coin or token must be accounted for separately when calculating the proceeds, adjusted cost base, and gain or loss.
Coinberry believes that the information provided in this section is reliable and is provided to the best of our ability based on the information available to us, however this information may not reflect all required adjustments. The information provided in this section should not be used for the purpose of tax reporting as certain events are dependent on individual circumstances. Please read our full disclaimer.
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