Investing

Bitcoin and Ether

  • Last Updated:
  • Mar 22nd, 2017 5:51 pm
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[OP]
Member
Apr 9, 2012
327 posts
78 upvotes
Markham
Harambissimo wrote:
Mar 20th, 2017 12:43 pm
I used to buy off canadianbitcoins.com, it's probably the easiest way since they accept a lot of Canadian forms of payment, but the spread on their transactions is absolutely terrible.

I've moved to kraken.com/, which is the biggest cryptocurrency exchange out there, but because it's not Canadian, you're required to wire money to a Japanese bank to fund your account. But I can assure you that it's totally legit.

I'd personally advise for investing in Ether vs Bitcoin for all the reasons the posters above have listed. Read up a bit on what Ethereum can do - it's starting to get a lot of institutional adoption recently and is still in its very early days IMO.
You need to use https://www.quadrigacx.com/ then.

it's Canadian and also has very little fee or no fee at all depending on the method of transfer.
Jr. Member
Aug 7, 2014
167 posts
24 upvotes
atang810 wrote:
Mar 20th, 2017 1:37 pm
So suppose you bought $20k CAD of Bitcoin and then use the Bitcoin later to buy USD (gain or loss). If you haven't converted it back to CAD, how can you ever track the gain loss? And then you use the USD later to buy stocks and also use for vacation?

I can see how it's very easy to create a taxable event when it's $20kCAD bit coin and then back to CAD at like $22kCAD. But how do you track it when you have multiple transactions and never translate back to CAD?
The taxable event includes: gain or loss, if any, when u change your C$20k bitcoin to US$, and gains or loss when u later sells your US$ stocks, whether u convert the US$ back to C$ is irrelevant.
[OP]
Member
Apr 9, 2012
327 posts
78 upvotes
Markham
psudolam wrote:
Mar 20th, 2017 4:21 pm
The taxable event includes: gain or loss, if any, when u change your C$20k bitcoin to US$, and gains or loss when u later sells your US$ stocks, whether u convert the US$ back to C$ is irrelevant.
IC. thanks for the clarity. I haven't bought any digital currency yet but I guess once I do, I need to track every thing.
Deal Addict
Feb 22, 2007
1085 posts
119 upvotes
Toronto
Lots of good info, thanks guys
Member
Mar 30, 2011
432 posts
77 upvotes
North York
I have only used QuadrigaCX and haven't had any issues so far. I did a wire transfer to them and the money was in my account the next business day. Withdrawing my BTC to another exchange was no hassle at all as well. Their customer support does take a while to respond though. In terms of taxes, you should have this stuff set up early on (you'll be trading a lot and it'll be hard to record down and get a paper trail at times!). I use this site: https://bitcoin.tax/
Member
Feb 8, 2011
400 posts
71 upvotes
Toronto
I am still getting mixed info on the whole capital gains thing.

Lots of great info though, looking at grabbing ether.
Deal Addict
Dec 31, 2006
1212 posts
211 upvotes
atang810 wrote:
Mar 17th, 2017 11:28 am
Interesting sub topic on the tax of digital currency.

http://www.cra-arc.gc.ca/nwsrm/fctshts/ ... 5-eng.html

If traded like a commodity, then it's a taxable event.
If you are a seller of a service/item and you receive digital currency, it's taxable.

What it doesn't show, is if you purchase Digital currency and later use it for items. i.e. similar to buying USD or GBP and then in turn purchase things in US or England.
I don't think this is a taxable event. Very much like you obtain foreign currency for vacation.
Its defintely taxable
If you buy USD you convert it at the CAD cost on the day - when you sell or buy something with it, you convert it at that date. Difference is gain/loss.

Bitcoin/Ether is defintely taxable in the same way.
I am a friendly Koodo customer and AMEX customer.
[OP]
Member
Apr 9, 2012
327 posts
78 upvotes
Markham
T3NSION wrote:
Mar 22nd, 2017 12:45 pm
Its defintely taxable
If you buy USD you convert it at the CAD cost on the day - when you sell or buy something with it, you convert it at that date. Difference is gain/loss.

Bitcoin/Ether is defintely taxable in the same way.
Good luck tracking that. I understand if everything is big block trades. What if you buy Ether/Bitcoin and then use small bits for services etc and switch to USD for vacation needs etc etc.
Deal Addict
Dec 31, 2006
1212 posts
211 upvotes
atang810 wrote:
Mar 22nd, 2017 2:56 pm
Good luck tracking that. I understand if everything is big block trades. What if you buy Ether/Bitcoin and then use small bits for services etc and switch to USD for vacation needs etc etc.
It's on you to track it - it doesn't change the fact that it's taxable.
I am a friendly Koodo customer and AMEX customer.
[OP]
Member
Apr 9, 2012
327 posts
78 upvotes
Markham
T3NSION wrote:
Mar 22nd, 2017 3:17 pm
It's on you to track it - it doesn't change the fact that it's taxable.
I agree it's taxable. But as another poster have said, i highly doubt you will have to pay taxable gains switching USD to spend for vacation etc.

so if you buy bitcoin and use it for some services, not sure if it's deemed taxable.
Deal Addict
Dec 31, 2006
1212 posts
211 upvotes
atang810 wrote:
Mar 22nd, 2017 4:00 pm
I agree it's taxable. But as another poster have said, i highly doubt you will have to pay taxable gains switching USD to spend for vacation etc.

so if you buy bitcoin and use it for some services, not sure if it's deemed taxable.
It is still taxable - there just isn't much of a change if I bought $10000 USD today for $13500 CAD and spent it all tomorrow on my trip cause the FX change between today and tomorrow is minimal.

If you exchanged $10000 USD today for $13500 CAD and spent the $10000 1 year from now and the FX rate was 2:1, then you would have a $6500 gain to report. Spending the money on services has no effect on whether its taxable.
I am a friendly Koodo customer and AMEX customer.
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