Any income from transactions involving cryptocurrency may need to be reported for tax purposes. Similar to trading stocks, any activity (i.e., buying and selling coins) that results in gains could be considered income.
Because coins can be bought and sold, the Canada Revenue Agency (CRA) generally treats cryptocurrency as a ‘good’ that can be exchanged. Transactions that result in a profit could be considered income or capital gain and would need to be reported on your income tax. If you’re wondering whether your transactions need to be reported, speak with a tax professional or read the CRA’s guide for cryptocurrency.
We offer a document called Realized Gains and Losses to your account to help you prepare your return. This document breaks down your adjusted book costs and your proceeds of disposition to help you report the most accurate number on your income tax.
It’s important to keep in mind that there is no official tax slip offered for cryptocurrency, so make sure to double-check these numbers before filing or visit your friendly neighbourhood tax professional.
Get your cryptocurrency gains and losses report
Access your 2020 Realized Gains and Losses report by following the steps below.
- Sign into the Wealthsimple Trade app on your mobile device
- Tap the Profile icon on the top left corner of the screen
- Select the Accounts menu item
- Choose your Crypto account
- Select Tax Documents
A word of warning
This article is provided for informational purposes only. It does not cover every aspect of the topic it addresses. The content is not intended to be tax, investment advice, legal or any other kind of professional advice. Before taking any action based on this information you should consult a tax professional. This will ensure that your individual circumstances have been considered properly and that any action you take is based on the latest available information.