Is bitcoin taxed in Canada?

No need to worry if you bought Bitcoin but have not touched it since, but once that cryptocurrency is converted into a real amount, for example when you sell it or use it to buy something, you are on the radar of the so-called taxman. If you buy and sell bitcoin at a profit, you have income that must be reported for tax purposes. The Income Tax Act does not contain a specific framework that tells us exactly how Bitcoin is taxable. Crypto-currencies are considered as a commodity. As such, any resulting gain or loss could be taxable income. Purchasing Bitcoin or receiving Bitcoin should not be taxable. If you operate a Bitcoin mining operation, this will also have tax implications. The cryptocurrency obtained in this process will have to be declared as income.

Leave a Reply

Your email address will not be published. Required fields are marked *