Published: March 25, 2020
Last Updated: April 13, 2020
Taxation of Sales of Bitcoin Before Year End
While merely holding bitcoin, dash, or other cryptocurrency does not give rise to tax, the sale will result in a capital gain or full income inclusion. The use of bitcoin in a transaction will also be considered a disposition for Canadian income tax purposes and will result in income that has to be reported. If you are planning to hedge against a potential bitcoin bubble collapse by selling some BTC, consider delaying that sale until the new year so that the profits will be taxed in 2018, if you think any possible collapse won’t take place before year end. If you sell digital currency in 2017 your profits will have to be declared when you file your 2017 tax return by April 30, 2018.
Disclaimer:
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."
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