Questions? Call 416-367-4222

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.


"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."

Get your CRA tax issue solved

Address: Rotfleisch & Samulovitch P.C.
2822 Danforth Avenue Toronto, Ontario M4C 1M1

Taxation of Sales of Bitcoin Before Year End
Ways to Deal with a Cryptocurrency Tax Audit
Image of different crypto coins beside phone showing crypto stocks
The Tax Liability for DAO Profits and Token Disposition: A Canadian Crypto Tax Lawyer Guide
Image of bitcoin and crypto shop
Tax Planning to Reduce the Effects of the FTX Collapse: Advice from a Canadian Tax Lawyer
Image of large gold Ethereum coin on gray background
Canadian Tax Implications of The Ethereum Merge: A Guide from a Canadian Tax Attorney
Picture of white bitcoin & crypto shop with a palm tree in front
Keeping Records of Crypto Currency: A Canadian Tax Lawyer’s Guide
Image of front of bitcoin & crypto shop
Tax-Fraud Investigators Identify a Potential $1 Billion Crypto-Based Ponzi Scheme and Target over 50 Criminal Leads in Canada, the US, the UK, Australia & the Netherlands – Tax Implications for Canadian Taxpayers who Lose Cryptocurrency or Non-Fungible Tokens because of Fraud Canadian Crypto-Tax Guidance from a Canadian Crypto-Tax Lawyer
Image of blue light up sign for bitcoin & crypto shop
Canadian Cryptocurrency Tax Planning: Transferring Cryptocurrency to a Bare Trustee or Holding Cryptocurrency as a Bare Trustee – Canadian Tax Guidance from a Canadian Tax Lawyer
Picture of Canadian bitcoin and crypto shop for cryptocurrency transactions
Canadian Cryptocurrency Tax Trap: Derivative Tax Liability under Section 160 for Non-Arm’s-Length Cryptocurrency Transactions – Canadian Tax Guidance from a Canadian Tax Lawyer