Personal and Business tax reporting are effected if you hold, accept or trade cryptocurrencies in Canada.
If you held more than $100,000 worth of cryptos at any time in 2017, you likely need to file form T1135, the Foreign Income Verification Statement with your other tax forms.
If you accepted cryptocurrency to pay for services, or if you paid for goods or services with cryptocurrency - these are taxable events that need to be reported. But unlike using Canadian Dollar to pay, using cryptocurrency is considered a barter transaction for income tax purposes in Canada.
CoinTracking.co Checked By A Tax Professional
For my 2015 tax report and my 2016 report to CRA, I used Cointracking.co to import my trading activity and report my capital gains. It worked well for my friend who has a very simple crypto portfolio. But for myself, in 2017 my cryptocurrency and Bitcoin trading became my full time occupation - and - involved much more money.
While cryptocurrencies are treated like a commodity for tax purposes in Canada, a professional trader will be taxed on account of income, while a casual investor may have their cryptos taxed as capital in nature.
And really - I could not explain the difference if you were to ask me...
All of these tax and accounting details are beyond my expertise - and I have no intention of becoming a tax consultant... In my view, accounting is the dreary side of money. I'll gladly pay someone for that while I go have fun making more money.
Researching CryptoCurrency Tax Requirements in Canada
Last week, on march 15 2018, BDO published an informative article detailing Canadian CryptoCurrency Tax Implications: 'THE CRA’S POSITION ON CRYPTOCURRENCY: INCOME TAX IMPLICATIONS'
And as a result, I learned a few things - and this year I will get a second opinion on my tax reporting.
While I am delighted to be paying more in taxes this year than I had earned in some years - I still want to minimize the fees (so I may invest what I save back into cryptos)
The Financial Consumer Agency in Canada posted an informative page about digital currencies that covers basic definitions at tips for using digital currencies.