Crypto Taxes: Selling cryptocurrency (taxable event)

Selling, trading or disposing of cryptocurrency is a taxable event reportable to Canada Revenue Agency, the gain or loss must be reported on your tax return.

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Buy Bitcoin > Crypto Taxes > Selling, Trading & Disposal

Updated: March 24, 2021

Disposal of cryptocurrency is a taxable event reportable to Canada Revenue Agency.

Selling cryptocurrency is a taxable event reportable to Canada Revenue Agency.

Anytime you sell a particular coin or token, the gain or loss must be reported on your tax return. For individuals, this would be a T-1 personal income tax return for the calendar year that the sale occurred. For corporations, this would be a T-2 corporate tax return for the fiscal period that the sale occurred.

When trading in Cryptocurrency, what is considered a taxable event in Canada?

Exchanging a particular coin or token for a different coin or token is a reportable taxable event. For example, exchanging Bitcoin for Litecoin would be a sale of Bitcoin and a purchase of Litecoin. You would have to report the gain or loss on the sale of the Bitcoin and track the ACB of the Litecoin.

Converting a coin or token into FIAT currency (i.e. Canadian dollars) is a taxable event.

The purchase of a good or service with cryptocurrency would be considered a sale of the cryptocurrency used to purchase the good or service. For example, purchasing a new computer using bitcoin would be a sale of the bitcoin used to acquire the computer resulting in a reportable gain or loss.

When trading in Cryptocurrency, what is considered a non-taxable event in Canada?

Transferring a coin or token between different cryptocurrency exchanges is not a taxable event. For example, transferring 10 Bitcoin from Coinsquare to Coinberry is not a sale of a coin or token. There has been no actual disposition of the coin or token, simply a change in custodian.

Transferring a coin or token to or from Coinberry and your personal wallet is not a taxable event. For example, transferring 10 Bitcoin to or from Coinberry with your personal wallet is not a sale of a coin or token. There has been no actual disposition of the coin or token, simply a change in custodian.

Crypto Taxes: Buying & holding

Buying cryptocurrency is not a taxable event

Crypto Taxes: Selling & trading

The sales of crypto must be reported to CRA

Calculation of crypto gain or loss

Proceeds minus the average adjusted cost base

Reportable gain or loss

All crypto gains and losses are reportable

Books and tax records

Keep records of your cryptocurrency transactions

Capital gain vs. Business income

Capital gains and losses vs. Business income

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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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