| I will trust my accountant; he is after all, on the hook for how it is reported. Thanks for posting the links! Taxtips.ca is not an official source, and note they use a ton of "may" be this and "might" be that. I will ignore that page, since they clearly do not know and are not the CRA. The Canada.ca link is consistent with what my accountant said -- when you use crypto to purchase goods or services, it is treated as income (just like bartering), taxable in equivalent CAD value at the time of the transaction. Trading crypto for other crypto is _not_ a goods or service, since crypto is treated as an intangible asset or commodity. The third link is also consistent with this view: "Buying and selling digital currency like a commodity When you file your taxes you must report any gains or losses from selling or buying digital currencies. Digital currencies are considered a commodity and are subject to the barter rules of the Income Tax Act. Not reporting income from such transactions is illegal." In order to be considered a "gain" or a "loss", according to my accountant, the commodity must be realized into fiat money. "Selling or buying" means selling into fiat or buying with fiat. "Bartering" means trading for goods or services -- crypto is not considered to be goods or services. |
Thanks for the extended update!
That's very interesting! I have been hesitant to take advantage of some potential gains because of the burden of maintaining a record of every inter-coin transaction.
If your accountant is correct, then that's a load off—and a major advantage.
It really is a brand new asset class, then.