Earlier this year one of my blog posts was about Bitcoin, – specifically that cryptocurrency gains are taxable, and that not reporting these gains is a crime.
Last month, CRA launched a joint international effort aimed at investigating cryptocurrency-related tax evasion, which may involve users of Bitcoin, Dodgecoin, Litecoin, and several others.
Anyone who has been trading in cryptocurrencies will need help because the accounting required to track and report these gains can get quite complex.
Not only do you have to track when you buy and sell Bitcoin and calculate the capital gain, if you buy merchandise with Bitcoin it triggers a disposition and you have to calculate the capital gain on that amount of Bitcoin at the time of the transaction.
A Bitcoin miner? Now it’s not a capital gain, it’s income.
So if you hear anyone bragging about their Bitcoin gains, or losses, ask them if they have a good accountant!