Income taxes on Cryptocurrency transactions in Canada
                     Income taxes on Cryptocurrency transactions in Canada
https://www.maroofhs.com/tax-services-canada/personal-taxes/
Canada taxes cryptocurrencies such as Bitcoin as a commodity.
Depending on our circumstances, the resulting income is taxed as a 
business income or capital gain on your personal income tax return.
If you hold bitcoin or other cryptocurrencies as a Capital asset, the 
result is going to be a Capital gain or loss. Such a gain or loss is 
included only half in your income.
If you are running a crypto business such as trading as a day trader 
and have huge volumes of transactions, CRA will say it’s a business 
income. Soits important to consult some tax professional to 
determine if you are running a business or holding capital assets.
If you are a cryptocurrency miner you are definitely running a 
business and you can treat income as a business income. Business 
income can be offset against other business losses as well, even your 
employment income.
When you are running a business, you are entitled to all the 
deductions a business will be ordinarily allowed. Some of these 
transactions can bring down your income significantly. Your personal 
income tax accountant in Canada can best help you saving using 
potential deductions.
A really good post explaining how the cryptocurrencies
 are taxed in Canada can be found here. You can understand the 
difference between Business income and capital gain from 
cryptocurrencies. It also explains what happens when you exchange 
one cryptocurrency for another one or buy some goods or services 
using cryptocurrencies.
Maroof HS CPA Professional Corporation is a Toronto based CPA firm 
providing full scale income tax services in Canada. You can utilize 
the professional income tax preparation and planning in Canada 
here.
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