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New Member
posted Jan 24, 2021 1:39:15 PM

Do you enter purchases of Cryptocurrencies, when you didn't dispose of any, for the 2020 tax year?

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1 Replies
Moderator
Feb 15, 2021 4:59:40 PM

It depends. Generally, you wouldn’t need to report anything unless it was income – either a capital gain/loss (because of a sale or trade), or because you received an amount of cryptocurrency as a payment (interest, salary, sales income, etc…). However, if you have a cryptocurrency business, in some cases you would report your cryptocurrency like it was inventory. Your purchases would be reported as part of your Cost Of Goods Sold.

 

The CRA has a guide to the tax treatment of cryptocurrencies here: https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/digital-currency/cryptocurrency-guide.html