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Crypto and taxes

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  • Apr 6th, 2021 6:27 am
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[OP]
Sr. Member
Feb 17, 2005
961 posts
292 upvotes

Crypto and taxes

Was reading through a lot of stuff about taxes and crypto. A disposition is subject to tax (sell, trade from one crypto to another, etc). Question on this situation

- let’s say I have $1000 worth in crypto
- $950 was my own money. $50 was a mixed between referral bonuses and free crypto from Shakepay, etc).
- one year later I decided to sell and for easy math let’s say it’s worth $2000. So I made a $1000 profit.

Am I reporting the entire $1000 as a capital gain on investment? Do I include the free / gifted portion of the crypto? This situation excludes the transaction fees that you would include as I’m trying to keep the variables down

If I am liable to being taxed on the free crypto, does that mean if I use Shakepay everyday to get free crypto, upon disposition, it’s all subject to capital gains?

Thanks in advance
4 replies
Deal Fanatic
User avatar
Sep 1, 2013
6184 posts
754 upvotes
porkchopbread wrote: Was reading through a lot of stuff about taxes and crypto. A disposition is subject to tax (sell, trade from one crypto to another, etc). Question on this situation

- let’s say I have $1000 worth in crypto
- $950 was my own money. $50 was a mixed between referral bonuses and free crypto from Shakepay, etc).
- one year later I decided to sell and for easy math let’s say it’s worth $2000. So I made a $1000 profit.

Am I reporting the entire $1000 as a capital gain on investment? Do I include the free / gifted portion of the crypto? This situation excludes the transaction fees that you would include as I’m trying to keep the variables down

If I am liable to being taxed on the free crypto, does that mean if I use Shakepay everyday to get free crypto, upon disposition, it’s all subject to capital gains?

Thanks in advance

https://www.canada.ca/en/revenue-agency ... 1989_90933
If you receive property as a gift, you are generally considered to have acquired the property at its fair market value (FMV) on the date you received it. Similarly, if you win property in a lottery, you are considered to have acquired this prize at its FMV at the time you won it.
The way I see it, your ACB is 1K, so you report a capital gain of 1K (unless there is some special rule for Crypto which I am unaware of)
[OP]
Sr. Member
Feb 17, 2005
961 posts
292 upvotes
CheapScotch wrote: https://www.canada.ca/en/revenue-agency ... 1989_90933


The way I see it, your ACB is 1K, so you report a capital gain of 1K (unless there is some special rule for Crypto which I am unaware of)

Thanks so looking at the link and applying it here, if Shakepay gave me $20 worth of crypto and now it’s worth $40, my $20 gain is taxable when I sell?
Deal Fanatic
User avatar
Sep 1, 2013
6184 posts
754 upvotes
porkchopbread wrote: Thanks so looking at the link and applying it here, if Shakepay gave me $20 worth of crypto and now it’s worth $40, my $20 gain is taxable when I sell?
Yes, I believe so. In any event, if I were in your shoes, I would go ahead and report a $20 capital gain on my tax return; if the CRA asks you about it, you can say you were just following the instructions in their own guide.

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