How should you
claim your cryptocurrency on your taxes?
You would claim them on you taxes as a capital gain – under stocks, just like a trade.
Online Version -
Under the
·
"Income" Tab - drop down menu
to "Investments" and start there.
·
“Your Capital Gains Profile for 2017”
·
Check - Sold
stocks, bonds, real estate, other capital property, or sold qualified
small business corporation shares and/or qualified farm property and you have a
capital gain or loss to report
·
Click continue
– “Capital Gains” - Type of capital property disposed
of
·
Select - Mutual
fund/publicly traded shares/stocks.
·
And continue
on from there.
As for the money from your paypall account, that would be considered self employment income (freelance) which would be claimed on the T2125 Self employment form. You are required to claim any income made in whatever taxation year.
If you have not claimed certain income from previous years you will have to do an amended return (T1ADJ) from previous years, and claim whatever amount you have earned in that taxation year to the government.
Here is the link to access the T1ADJ direct from the CRA:
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1-adj.html
You can also log into your CRA online account - - https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individua... and make adjustments from there as well. If you have not filled your previous years return, here is the link to access all previous years returns from Turbo Tax:
https://turbotax.intuit.ca/tax-software/prior-year-taxes.jsp
Online access to T2125 Form – HOW to get to and fill
out step by step
While you are filing out all your profile questions, and you
are not sure if your answer is YES or NO. Simply click on YES and it will open
up more information on what you may have to declare. If not, then simply answer
NO and move on to the next question. Also this is a guideline "how
to" not every question will reflect your personal situation, so if
not then simply move on to the next steps.
Section - Income & work related expenses
Did you work? YES
Did you have expenses related to your
employment? YES/NO
I had employment expenses – CHECK if needed
Did you have self-employment income or expenses? Note:
Professional income, commission income, farming income,
fishing income, and other are all kinds of self-employment income.
YES
I have business expenses to claim that are related to
earning self employment income. – CHECK (if needed) You can only claim what is part of your business. No personal purchases can be claimed unless they are used for business purposes.
Don’t forget to “Enter the province or territory where your
business was located. Only enter a province or territory if you had a permanent
business set up there.” (If needed)
Did you have other income that you have not yet told us
about? Examples include scholastic, foreign, disability, alimony, child
support, death benefits, and working income tax benefit payments. YES
I received other income not included anywhere else –
CHECK (If needed)
Income Tab – “Self employment” drop down -
Your Self-employment Profile for 2016
This opens the T2125 form that must be filled out correctly
to ensure smooth transmission to NETFILE. Please make sure that the top part of
the form “Identification” section is filled out correctly.
Business Name, province, postal code, Industry Code ect...read each
section carefully to ensure you are not missing anything needed.
This forms holds all the information needed to declare any
independent worker’s time and expenses while performing a duty.
Click “Continue” through every section of the form.
Please see link from the CRA on Digital Currency for more clarity:
https://www.canada.ca/en/financial-consumer-agency/services/payment/digital-currency.html
Hope this helped clarify your earnings and how to claim them on your taxes.
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