How does Canada's tax system treat profits from trading cryptocurrencies?

1 answers

• durteMar 25, 2021 · 4 years ago
  As an expert in the field, I can tell you that Canada's tax system treats profits from trading cryptocurrencies in a similar way to other investment gains. The Canada Revenue Agency (CRA) considers cryptocurrencies as commodities, so any profits you make from trading them are subject to capital gains tax. The tax rate for capital gains depends on your income tax bracket and the length of time you hold the cryptocurrencies. If you hold them for less than a year, the gains are considered short-term and taxed at your marginal tax rate. If you hold them for more than a year, the gains are considered long-term and taxed at a lower rate. It's important to note that mining and staking rewards are also taxable and should be reported as income. Make sure to consult with a tax professional to ensure you are accurately reporting your cryptocurrency trading profits.
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