What are the tax implications of trading digital currencies with US and Canadian dollars?

1 answers

• May 07, 2022 · 3 years ago
  Trading digital currencies with US and Canadian dollars can have tax implications that you should be aware of. In the US, the IRS treats digital currencies as property, so any gains or losses from trading are subject to capital gains tax. This means that if you sell your digital currency for a profit, you'll need to report it on your tax return and pay taxes on the amount. The same applies in Canada, where the Canada Revenue Agency (CRA) treats digital currencies as commodities. If you make a profit from trading, you'll need to report it as capital gains and pay taxes accordingly. It's always a good idea to consult with a tax professional to ensure you're following the tax laws in your country.
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