I put in about $10500 into crypto last year DECEMBER. I was purchasing crypto and NFT's but lost about $5000. Would I be able to claim as a loss? Also, the loss happened mainly THIS year, but I put the $10500 in around December... would I just wait to claim the loss for next years taxes? Or would I put it in now, and when I pull the money out from my crypto wallet, than I would claim loss? Any help would be amazing.
Yes, you could claim the loss next year because the loss (transaction) mainly happened in 2022.
If you have a gain/loss in your cryptocurrency trading, you don't have to cash out but still have the responsibility to report it.
(For example, if you bought stocks and then sold them for a gain, it’s a taxable event. Just because you haven’t withdrawn any physical cash from your accounts doesn’t change that fact. This is no different from selling stocks and not withdrawing the money from your account. Make sure you keep records of your cryptocurrency transaction in case the Canada Revenue Agency(CRA) asks to see them.)
For more information on how to report gain/loss in TurboTax, please click:
TurboTax How do I report the sale of cryptocurrency on my taxes?
Thank you for choosing TurboTax.
Yes, but there are more details about the
disposition of cryptocurrency.
Reporting business income or capital gains from the disposition of cryptocurrency (possible taxable events)
(for example, if you take crypto you bought for $1000 exchange it for an $8,000 computer, its a $7000 capital gain)
For more information, please click:
Canada Revenue Agency(CRA) Guide for cryptocurrency users and tax professionals
Thank you for choosing TurboTax.
Yes, you could claim the loss next year because the loss (transaction) mainly happened in 2022.
If you have a gain/loss in your cryptocurrency trading, you don't have to cash out but still have the responsibility to report it.
(For example, if you bought stocks and then sold them for a gain, it’s a taxable event. Just because you haven’t withdrawn any physical cash from your accounts doesn’t change that fact. This is no different from selling stocks and not withdrawing the money from your account. Make sure you keep records of your cryptocurrency transaction in case the Canada Revenue Agency(CRA) asks to see them.)
For more information on how to report gain/loss in TurboTax, please click:
TurboTax How do I report the sale of cryptocurrency on my taxes?
Thank you for choosing TurboTax.
So would I have to put in somewhere that I invested my $10500 into crypto for last year cause I bought in around nov/dec? Or would I only input that once I cash out/sell my crypto for a loss?
I don't plan to cash out, so there is the chance that I can always get more $ if crypto goes up, but also, could go down, so lots can change in 8 months...
Yes, I understand! As long as the gain/loss is “unrealized,” meaning the asset's value has increased on paper but the asset remains in your possession, you do not have to pay taxes on it.
You don't have to report when you make a purchase because there is no taxable event until you sell the crypto.
Okay, and JUST to confirm (sorry I really just want to make sure I do it right) the only time I report is when I sell the crypto back to Canadian funds... correct?
Yes, but there are more details about the
disposition of cryptocurrency.
Reporting business income or capital gains from the disposition of cryptocurrency (possible taxable events)
(for example, if you take crypto you bought for $1000 exchange it for an $8,000 computer, its a $7000 capital gain)
For more information, please click:
Canada Revenue Agency(CRA) Guide for cryptocurrency users and tax professionals
Thank you for choosing TurboTax.