akazuss (OP)
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September 20, 2018, 02:49:01 AM |
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Hello everyone
Sorry for my English skill. This is my first time to post the topic. I have some question about taxing profit from Bitcoin. Start from zero
I trade this for personal not business( I have only personal account)
1. Form to fill for declare CRA (Is it 5000-S3 T1 General 2017 ?) send it with T1 at end of year ?
2. Profit from Bitcoin always count as Capital gain?
I never know or experience to do any document about tax(income, T1). My cousin do everything for me and then send to accountant
and this time I have to find the way to pay tax for bitcoin myself( everyone around me don't know, interested , even resist to cryptocuurrency)
even accountant I went to consult for tax. They didn't know when I ask about cryptocurrency. I just want to know exactly how to pay tax.
Need knowledge from you guys who knows this process or experience this. I don't want any problem or more tax come after me from CRA.
(Someone I know got CRA chase after and always take money off from his account because CRA found he avoided tax and sue him for 1 M CAD)
I really appreciate for your help
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Accountant_92
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September 20, 2018, 04:09:01 AM |
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Right now I don’t think CRA has a defined plan on how to track a persons crypto investments. Due to the fluctuating prices of coins it will be hard to track gains and losses with the dollar value compared to any currency in question. I think within 5 years there will be some firm guidelines on how exactly one reports crypto gains.
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Danilotot
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September 20, 2018, 07:03:52 AM |
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I have no idea about the tax they will put in crypto, but if canada is available it will continue to be available to different countries using cryptocurrency. That is good for the government of the countries.
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palle11
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September 20, 2018, 11:01:43 AM |
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Tax issues are jurisdictional based. It is a country that formulates how they go about taxing in their environment (in fiat) and it is not internationally uniform. Therefore, for cryptocurrency too, it is a country base regulation.
I will suggest you go to the office responsible for collection of taxes and get the direction, requirement for payment of crypto tax, if they are taxing.
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akazuss (OP)
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September 21, 2018, 03:26:15 AM |
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Actually, I hate to know about taxing. It looks really hard complicated for me and many many more option to fill. I think they do not know and take tax unless I put money back to account. but point of my question I need to know cause I just see some gap of the bitcoin price you guys knew. Some website or platform trading cryptocurrency not the same price in the same time.
I just plan if I buy btc from A then transfer to B. I still have some amount of profit so I transfer fiat to account and then loop like this.
(can not take it out to do profit as coin from B coz every coin from B are all higher price from market so it suppose to be only way out)
That why they know about my fiat coming on my account. this cause me to study about tax from cryptocurrency if it's as my plan I think I still have profit left some after I paid tax to them.
But I'm not sure this action counts as money laundry? and profit from bitcoin do they calculate as capital gain or income?
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audaciousbeing
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September 21, 2018, 04:24:53 PM |
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Its really going to be difficult to see the right way its being treated at this time. And even me, I would be interested to know how to go about it especially for someone looking to do the right thing in the eyes of the law. I would only suggest some few things on how to go about it.
1. One thing is sure, you are not the only Canadian earning some revenue in bitcoin and engaged in crypto activities. There are even some people on the forum that can offer some word of advice on how to go about it. @DarkStar I know to be from that part of the world.
2. If all of that fails, the option is to write to the revenue authority itself and tell them you need explanation. Most tax authority have enlightenment and education unit that does that to the citizens and I am sure they would be receptive to someone coming to do the right thing rather than wanting to evade.
With the second option, its on record that you sincerely wanted to do the right thing and would come to your defence whenever you need to bring it up.
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LeGaulois
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September 21, 2018, 07:06:02 PM |
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If you trade, it should be considered as capital gain. You invested xxxx$ and made X% profit or loss. It isn't like if you worked and got paid in bitcoins. Doing so is an income. Of course, if trading is your full-time job or you make significant profits then it's an income and not a capital gain. I am not a Canadian citizen but it's how it works in my country, and it makes sense.
If you really want to be sure you should call the Taxes department to ask for a clear answer. It's also their job to help people with questions citizens may have. they're not just here to take people's money.
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amar786
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September 21, 2018, 10:24:38 PM |
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Canadian government demands income tax from bitcoin users but it seems to be in consulting period yet . some of the expert said bitcoin should be accept as capital gain. tax should be levied on the things buy from cryptocurrency. but Canadian government demands tax on income from bitcoin whether profit or loss every bitcoin/ crypto user should pay tax on the sale and purchase of bitcoin.
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hacekd
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September 22, 2018, 02:33:42 AM |
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Actually, I hate to know about taxing. It looks really hard complicated for me and many many more option to fill. I think they do not know and take tax unless I put money back to account. but point of my question I need to know cause I just see some gap of the bitcoin price you guys knew. Some website or platform trading cryptocurrency not the same price in the same time.
I just plan if I buy btc from A then transfer to B. I still have some amount of profit so I transfer fiat to account and then loop like this.
(can not take it out to do profit as coin from B coz every coin from B are all higher price from market so it suppose to be only way out)
That why they know about my fiat coming on my account. this cause me to study about tax from cryptocurrency if it's as my plan I think I still have profit left some after I paid tax to them.
But I'm not sure this action counts as money laundry? and profit from bitcoin do they calculate as capital gain or income?
there have been more and more similar fraud cases reported in recent months. Because of their limited ability to combat such crimes, he claimed that their main strategy was to increase public awareness about the fraud. So the goal of the Canadian government to implement a bitcoin tax is to try to regulate it to profitably reduce such actions. |
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