Tag Archives: All

Introduction: Canadian residents earning cryptocurrency rewards from foreign platforms or investments must be aware of their reporting obligations under Canadian tax laws. The Canada Revenue Agency (CRA) requires taxpayers to report their worldwide income, including cryptocurrency rewards from foreign sources.  This article outlines how to report foreign crypto rewards on your Canadian tax return and the penalties […]

Introduction: The rise of cryptocurrency has introduced new challenges for investors, especially regarding the tax implications of digital currency transactions. In Canada, many people wonder whether simply buying cryptocurrency has any immediate tax consequences.  This article explores the tax rules around purchasing cryptocurrency in Canada, the role of the Canada Revenue Agency (CRA), and strategies to remain compliant […]

Introduction Yield farming has gained popularity as a way to earn passive income in decentralized finance (DeFi) by staking or lending cryptocurrency in exchange for rewards. However, the income earned from yield farming is taxable in Canada, and planning your taxes effectively can help minimize liabilities while ensuring compliance with the Canada Revenue Agency (CRA).  […]

Introduction As the Canadian Revenue Agency (CRA) tightens regulations on cryptocurrency activities, Initial DEX Offerings (IDOs) have emerged as a significant point of interest for both investors and tax authorities.  Participating in IDOs, which are decentralized token sales, involves the acquisition and trading of digital assets, making it crucial for Canadian participants to understand the […]

Introduction Reporting cryptocurrency income accurately to the Canada Revenue Agency (CRA) is crucial to avoid penalties and ensure compliance. Whether you’re earning income from mining, staking, trading, or other crypto activities, it’s important to understand the requirements and best practices for reporting. Types of Cryptocurrency Income Cryptocurrency income can come in various forms, including: Mining […]

Introduction Investing in Initial DEX Offerings (IDOs) can be highly rewarding but comes with specific tax implications in Canada.  Understanding these implications and adopting effective tax planning strategies can help investors minimize their tax liabilities and ensure compliance with the Canada Revenue Agency (CRA). Understanding IDOs and Taxable Events IDOs are a method of raising […]

Introduction As the popularity of cryptocurrencies continues to grow, so does the Canada Revenue Agency’s (CRA) scrutiny of crypto transactions. Being prepared for a potential audit is crucial for Canadian taxpayers engaged in cryptocurrency trading, mining, staking, or any other crypto-related activity.  This article provides guidance on how to navigate CRA audits on cryptocurrency transactions. […]

Introduction Non-Fungible Tokens (NFTs) have created new revenue streams for creators, primarily through royalties and licensing income. Proper accounting for these types of income is essential for ensuring compliance with Canadian accounting standards and tax regulations. This article provides an overview of how to handle NFT royalties and licensing income in your financial statements. Recognizing […]

Introduction Cryptocurrency donations are becoming more common in Canada, but they come with specific tax reporting requirements.  Whether you are a donor or a recipient, knowing how to report these donations to the CRA is essential to avoid compliance issues. For Donors: Fair Market Value (FMV) Reporting: Donors must report the FMV of the donated cryptocurrency […]

Introduction Non-Fungible Tokens (NFTs) have gained significant traction in recent years, becoming a popular digital asset among investors and creators. However, accounting for NFTs under Canadian standards can be complex due to their unique nature.  This article outlines the key considerations for recording NFTs in financial statements according to Canadian guidelines. Classification of NFTs NFTs […]