Demystifying Cryptocurrency Taxation in Canada: Secret Tax Tips for Bitcoin Traders and Investors
Vložit
- čas přidán 12. 06. 2024
- 💰Download any of our FREE eBooks available on our website to learn secret tax tips that will help you save more money on taxes: madanca.com/free-tax-secrets/
In this informative video, we delve into the intricacies of taxing crypto-assets in Canada, focusing on the crucial difference between business income and capital gains. Understanding these distinctions is essential for optimizing your tax strategy in regards to cryptocurrencies.
---------------------------
📌 Timestamps:
0:00 - Introduction
0:09 - Business Income vs Capital Gain Explained
1:10 - Factors Influencing Tax Treatment
2:39 - What Constitutes a 'Sale Event'?
3:20 - Case Study: Donnie's Crypto-for-Crypto Trade
4:01 - Transferring Cryptocurrency to Exchanges
5:18 - Conclusion
---------------------------
🔍 Key Takeaways:
- Learn how profits from crypto-assets are taxed as business income or capital gains.
- Understand the factors that determine tax treatment: frequency, ownership period, financial education, time spent, and leverage.
- Explore sale events and when they occur: trading for fiat, crypto-for-crypto trades, using crypto for goods or services, and gifting.
- Discover the tax implications of transferring cryptocurrency to exchanges or trading platforms.
🤔 Case Study: Donnie's Tax Scenario
Find out how Donnie, a day-trader, navigates the tax landscape with a detailed breakdown of her crypto-for-crypto trade.
🚨 Important Warning:
Learn about the potential tax consequences when transferring cryptocurrency to exchanges or trading platforms. Jane's case serves as a cautionary tale.
🔗 Useful Resources:
- CRA guidelines on crypto taxation:
www.canada.ca/en/revenue-agen...
👍 Don't forget to Like, Share, and Subscribe for more insightful content on crypto, finance, and taxation!
💬 Join the conversation in the comments below and share your experiences or questions. Let's navigate the crypto tax landscape together!
Thank you for watching! See you in the next video! 🚀💰 #CryptoTax #CanadaTax #BitcoinTaxation
---------------------------
👤 WHO AM I:
Allan Madan is a CPA and Tax expert with over 2 decades of experience in public accounting. Prior to founding Madan Chartered Accountant in Mississauga, he worked for Deloitte for six years, holding the position of International Tax Manager.
Allan has held numerous tax seminars, been involved in many complex tax reorganization transactions for Canadian companies, and specializes in Canadian corporate, personal, and International tax.
----------------------------
🖥 Visit our website for more information and tax-related advice:
madanca.com/
Follow us on social media:
Linkedin:
/ allan-madan-61b9033
Twitter:
/ madan_ca
Facebook:
/ madancharteredaccountant
Instagram:
/ madanaccounting
----------------------------
Disclaimer: The information provided in this video is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. All figures and dollar amounts are used for example purposes only. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided in this video.
You didn’t talk about staking and how it is taxed.
What is the law as far as holding, buying and selling and how tax is calculated?? Not mentioned here at all. What is the written rule?
Thank you.
Great video man. Really disappointing to hear about how 'knowledge of the bitcoin markets' could be used against people who understand bitcoin
Does the 30 day Wash apply to crypto currencies in Canada.
If I give a platform a crypto to grow and they grow a lot, is it taxable? If I withdraw it then tax I suppose, but what about if I grow it without withdrawing it for the year? I think what I send is taxable but what I grow is not unless it is withdrawn.
I invest using contracts for difference (CFD). These are leveraged products 1:50. The broker loans money to trader and charges interest ONLY if positions are held overnight . It’s called holding costs or overnight financing charges. Do you know if these are tax deductible expenses?
Need strategies now that they plan to increase it to 66.7%, any tips?
What if I sold crypto in one month? Capital gains or income
Hi im 39 years old 15 years ago I went to university to do accounting because my friend was doing that, and I was running for a bachelor in accounting but hated it so basicaly did only 1 certificate and I drop out in the middle of the second... 3 are needed to have a bacchelor. And never worked in that field because well it was really not for me. Im acity bus driver since 12 years
I watch youtube chanel on crypto and have some stuff shown to me on facebook and as this market is like a casino I dont put all my money in the same basket so I buy lots of different crypto and DCA basically throwing spaghetti at the wall to see what sticks. So I have a lot of transaction but since 2017 I barely sold anything... I just panic sold some stuf in the last market crash wich was really dumb.
Anyway can you please tell.me your thoughts because for me I file my tax based on capital gains because I think its would be not fair to say that its a business I just try to give my kids a better life and I dont want to loose half of what I may gain if it goes well and the market is not a whole scam.
Please please tell me your detail though I would really appreciate a lot
🙏🙏
its most likely a capital gain
since you are not actively trading
if oyu have vry few buys and sells per month
you can defend yourself
cra is just a judge so your story looks good enough
check out block chain backer on youtube for high quality crypto analysis
if you are selling coins in 2024 that you bought in 2023 and earlier
then most likely you are capital gains
if you are selling after only holding for less than 30 days and have done this all year then you are most likely a business
since its hard to defend that you are not doing this on purpose to pay monthly obligations like bills or food
you are good for trying to learn new markets
i wish you very well
and keep learning
Question for you Allan
Lets say I made 100 000$ profit.
I take this alcoin and change it to a stablecoin (taxable event? 50% capital gains taken here at 50%?)
I then have around 75k left since I just had a taxable event.
I then send this stablecoin to a canadian registered exchange to have it in my bank account.
Is this an other taxable event and i will lose an other 25% of my 75k?
Or since i already paid my capital gains tax on my first switch i wont have to pay taxes again on that?
Those rules are complete BS! How is a person supposed to learn about investing in crypto if they don't study it??? So, you're trying to figure out bitcoin information and suddenly your a business guy! Well thats a bunch of horse sh1t!
buy xrp
thank me later