ACCOUNTANT ANSWERS Crypto Tax Frequently Asked Questions

[@GabrielleTalksMoney]

This is a follow up to my Crypto Tax for Beginners video: kzbin.info/www/bejne/mYmXlqusoLBrkLc Don't let your crypto just sit - Earn up to 12% on crypto & fiat currency with NEXO! Use my link to earn $25 in BTC for depositing $100 (VALID UNTIL DEC 31st): nexo.io/ref/8jhn5fsmvk?src=web-link

[@mlau8899]

wealthsimple let you trade crypto but don't let you transfer fund to crypto right?

[@athelstan106]

By FAR and away the most helpful and concise information I've seen about tax implications for us Canadia crypto investors - THANK YOU! :D

[@victorp4603]

Congrats. Your content is professional and high quality. KZbin started to promote your content this month which is bringing in more and more viewers and thus subscribers. Likely 10k subscribers this month

[@tyreldelaney]

These crypto taxation videos are very helpful! Thanks! It's hard to find crypto tax information let alone Canadian tax information.

[@GabrielleTalksMoney]

Thanks!

[@paulpoco22]

Can I offset Stock Capital Gains against a Crypto Capital Loss?

[@GabrielleTalksMoney]

yes, you should be able to - you can offset capital losses against capital gains

[@richardfernande4142]

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[@garykubiak]

A bit of a rarer situation: some coins have proof of transfer mining, like mining Miami coin. The way it works is you commit a certain number of coins (STX in this case). And other miners do the same. For a particular block (about every 10 minutes), a miner is chosen at random to be the winner. The odds of winning are proportionate to the number of STX that you commit. The reward is granted in MIA coin. You do not get any STX back as a miner. Questions: How do you treat the STX that you committed? Since you never get back your STX, is it considered a capital loss? Mining is just a hobby in this case. When you win a block and are rewarded MIA coin, is the cost basis considered $0? This is also when mining as a hobby.

[@Sonickrunch]

That's a tough one since it could be considered gambling and not taxable at all since it's randomly awarded. Certain rewards are not considered taxable. Like Credit card rewards are not taxable, Shakepay's shake rewards are not taxable either.

[@MJ-cg8vp]

You are not required to file your tax every day. You file it only once a year. I would consider it as a loss of investment, so you claim capital loss in your tax return.

[@hiroanz]

Thank you for this video. How are rewards from staking taxed? Are staking rewards considered interest or business income?

[@nunyayobusiness2075]

You have a flawless skin it’s so clear and healthy coming from korean person . Please do a video of your skin care routine thanks . Oh and great video btw .

[@EdKonyha]

These videos are great! Thanks for taking the time to do this.

[@sauravlahiry6951]

hi sis, how sweet of u. the info is wonderful. keep it up.

[@diorNFT]

Really useful info in this vid, can you make a video on how NFTs are taxed? Would it be capital gains?

[@jeffkukkee]

Looking back at years of purchases, pricing in and out of multiple exchanges, trying to learn how to use Cryptos, I can honestly say that I've kept track of nothing. Room for improvement.

[@joeb.5564]

Great video👍 Don't forget to ask people to comment because it helps the algorithm.

[@secretagent2525]

Best CAN crypto tax info I've seen so far - Thanks!. I'd like to know more on how to handle rewards ex. Shakepay Shaking, Sign-up Bonus, %Crypto Cash Back on VISA Debit and/or Crypto acquired via Staking Rewards. Are these acquisitions considered income taxed at marginal rate or acquired at $0 cost basis for the adjusted cost base calculation and to be reported as capital gains at a future disposition?. Alternatively, can some of these types of transactions be considered non-taxable ie. in the case of a %Crypto Cash back Visa Debit -> Purchase in Fiat, receive % of purchase back in cryptocurrency?

[@Straland]

great content thank you. one thing I don't like with exporting transactions from exchanges is that ot is always in USD, finding the CAD value with the rates at the time of the transaction is a pain. I can't believe that not a single commercial tax software has a feature to facilitate this yet.

[@GabrielleTalksMoney]

I would export the daily FX rate from Bank of Canada website, then use the vlookup formula to match the dates and apply the appropriate FX rate!

[@RandomAF0001]

Hey. Great vid. It was really well done

[@RWAquariumPages]

great video! i love it! thanks for this and it came on my feed just in time for tax season!

[@DoubleDoubleD]

Ok at this Point Gabrielle you are one of my favorites Canadian finance KZbinrs who are actually providing value. Love you

[@GabrielleTalksMoney]

Thank you 😊

[@Prim3Pursuits]

Great follow up video!!

[@Tiffanymartins_]

It's has been so difficult for me trading on my own because i have had much losses.Think the real market is manipulated, please can anyone help me out or tell me what I'm doing wrong.

[@Tosodaniele]

She trades for me too. My first investment with mrs Kathleen gave me profit over $25,576 and ever since then I trade with her and it has been a good turn up

[@xblackrainbow]

how to calculate staking tax when some coins provide rewards every minute or so... eg algorand ?

[@Sonickrunch]

100% income on staking based on cad value when you were paid out.

[@DJOOLA221]

Thank you Gabrielle!!!

[@railviewgrove]

you are providing us great information, thank you!!

[@TimKoa]

Thanks for the video Gabrielle! I know next to nothing about taxes so your videos are helping me so much. I would love to see a video about tax tips for small business/youtubers. I'm a fellow Canadian KZbinr and my biggest question is what can we actually deduct as expenses if you're a content creator? Silly/serious example: If I were to make a video on Pokemon cards, could I claim a box of Pokemon cards as an expense? Thanks again for the helpful videos, I wish you the best :)

[@cryptommigrant5090]

Excellent video. Thank you so much. Question: is there any software the CRA accepts for inputing all transactions from exchanges and wallets?

[@vanessaoliveira2821]

You're amazing very didactic in your explanation 👏

[@sebchaps]

Great video, thanks ! When we write off hardware component for mining do we use the amount with or without vat?

[@letter2steve]

Thank you so much. This is very very helpful. You are awesome. :-) I'm feeling much better now about this topic. Namaste

[@nelfmo910]

Thank you! Glad I ran into your channel - and omg you're beautiful! For crypto stakers in DAOs, what is the most tax efficient move (ie. wrapping at start/unwrapping a year later to take profit)?

[@JuanMoon032]

Awesome videos Gabrielle. Another question for you. Is there a fiat amount before we get tax or is any income will get tax regardless of the amount? Thanks a lot!

[@vanileggio]

Thank you for this! I started in crypto this year and have 5000+ transactions on over 10 CEX & DEX. Even the crypto tax software can't figure it out. If I cash out 100% at the end of december and subtract my initial investment can I report the difference as my income?

[@GabrielleTalksMoney]

That seems like a simple and reasonable approach - make sure you have the supporting documents and consult with your tax advisor!

[@Meatello]

What if you don’t cash out, do I still report for this year, or when I cash out into fait say next year? Thanks

[@sir_dovaz]

You are the GOAT, and I love you!! I have some questions too: Why gifting should be taxed? Do you know something about crypto derivatives? Futures are financial contracts and should not be taxed the same as spot markets, I think. What if you just want to buy a stake in stablecoin (not as an investment) and use it to help and send it to family and friends overseas instead?! Thanks for sharing your knowledge. Peace!!

[@henryhomes]

Thanks for the answers. Would stablecoin dispositions need to be reported since there is no gain or loss?

[@dipsettakeover]

Amazing videos! How do you deal with staking gains? Do you just pay tax when you convert or sell to fiat?

[@an0nym0u5one]

I'm new in crypto investing, thank you for the informative video, keep up the great content. Greetings from Toronto. 👍

[@Poorboycrypto]

Wow, great video. This is exactly what I'm looking for. I have a question. If I end the tax year with a negative capital gain. Will that negative amount be carried forward and applied to the next year if my capital gain is positive?

[@GabrielleTalksMoney]

You can actually carry back capital losses 3 years, use it in the year, or carry forward indefinitely. However, you can only offset against capital gains.

[@tfarchive1]

Thanks for the detailed responses. I'm new to Crypto and plan to hold long term. Can I write off any of my equipment/power expenses even if I'm not gaining any income from selling Crypto?

[@MioShimapan]

For mining crypto you can do business or hobby. If I do it as a hobby, let's say I spent $5000 on equipment but only made $4000 in profits. Is it a capital loss of -$1000 or is it capital gain of $4000?

[@GabrielleTalksMoney]

I think I might do a video on mining on hobby vs business, so look out for that!

[@DL-fh6iy]

Gabrielle - great video! I'd like to ask about crypto interest. Would you report crypto interest that you earn while it sits in platforms like BlockFi, Celsius or Nexo in line 12100 in the year received? Then, assuming that I don't sell my crypto, the interest would add to the adjusted cost base (similar to dividends). When I sell (either using the crypto as currency or convert to fiat), then the tax treatment would be: (FMV-ACB) x 1/2. Please confirm - thanks!!

[@willd3rbeast]

Is staking a cryptocurrency considered capital gains or business ?

[@PassionateAdventures]

If you make capital gains, it's clear where that goes on the income tax forms. But what forms need to be filled when the crypto transactions (daytrading) are considered "business income"? Are these forms available in the TurboTax software??

[@jasonzyan]

same question. not sure if you got the answer. how to report business loss rather than capital loss.

[@darryl5826]

Hi Gabrielle Great info. Do we have an equivalent to a C R T in Canada?

[@cueriux]

Great video! subbed. I had a question about crypto loans. I understand you don't pay taxes on debt normally; but does this all still apply 100% when you receive crypto or stablecoin as a loan and then sell it for fiat?

[@hcamry]

Can we deal with an example on how to calculate average cost and capital gain from decentralized wallets like metamask, an different files from different exchanges

[@VORTEX203114]

Great Video! My question is, I buy and sell crypto but I invested a total amount of lets say $3000 last year but I made a loss of around $600 by the end of the year so I dont really have to file for anything do I?

[@JkBee]

Can you please give an update on the crypto bot? I don’t see that Newton connects with Bitsgap

[@zarukcodaedalus1886]

Good thing mine has transaction history and I get an email with every transaction to

[@Kirkhamfamily]

Any comment on the applicability of a T1135 filing for crypto held with cost base over $100K? Is crypto considered a foreign holding?

[@cookingwithbanana]

Hello Gabrielle, Thanks for your video! Can I ask why mining equipment can't be reduce as an expense 100%? thank you

[@halabira5807]

Hello can you help me about my taxes for 2021 returns? Kinda messed when I started everything this year..

[@rowandecker8473]

Don't we have unrealized gains here in Canada for things like equities? But you're saying this does not apply to crypto? Why is that, exactly? Thanks for the invaluable insights!

[@joshvincent8805]

What about tax treatment of NFTs and airdrops? Would be interested how those are categorized!

[@aldojaffeth5094]

My question is that I'm a international student here in Canada, I'm planning to transfer my crypto from my home country wallet to the wallet I use in Canada. So if I transfer that will I be taxed for that transferred money? Like they consider that transfer as a capital gain?

[@GabrielleTalksMoney]

Funds you bring to Canada prior to being a resident shouldn't be taxed in Canada as it's from after tax proceeds from your home country. It may be subject to tax for capital gains after being a resident of Canada. Though I recommend you consult with a tax specialist for your particular case

[@muhammadgazaliabubakar9030]

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[@aishatjimoh4510]

I will strongly advice you against self trading, it's really dangerous and had brought so many investors down, you need some one with the knowledge and strategies, someone dedicated to the crypto currency market buisness, and I will strongly recommend expert Mrs Jane

[@steven4vanw356]

Dang! Will you be doing another Q&A? I have a question.

[@Leo-qc004]

Hi Gabrielle, thank you for sharing all this information, that's very useful. I'm wondering if the referral bonus or the crypto we gained from the platform event is taxable or not?

[@dineshandavar]

Great Video! I have couple of questions *) Say I Bought 100 USD worth of bitcoin and then sold some part of my bitcoin holdings. I would have to calculate my marginal gain/loss for the part of crypto holdings that I sold. Can you please confirm? *) Certain exchanges offer passive income for just depositing crypto ( say nexo ). Most cases the passive income is provided as in the same cryptcurrency that is deposited. When does it have to be reported as income? When I sell this or as soon as the exchange drops your passive income? Same question for staking as well

[@washingtonchihwai5830]

can you do a video on taxes for forex traders

[@Meatello]

Hi Gabriel I started in crypto since May I’ve been buying and selling into stable coins, I’ve never cashed out to fait currency, so if I keep doing this into next year, do I have to report taxes for this year, although I never cashed out I keep buying, sell to stable coins and repeat all over? Thanks

[@theboy8207]

Very interested in this as well. I believe the conversion of profits to your stable coin would count as a taxable event. Then when you convert the stable coin to something else, that is also a taxable event but curious to know an accountants answer

[@lichellecruz5744]

I buy dividend stocks and etfs regularly in my personal account, do I need to calculate the cost base or i just have to rely on tax slips from my brokerage?

[@nw6591]

If you accidentally send the crypto to a wrong address, but than able to retrieve it, do I have to pay tax because there was a disposition?

[@jjcharry]

Hi Gabrielle, is there any crypto tax software that you recommend É

[@teevee5233]

So if I mine crypto and I do it small scale as a hobby I can claim the crypto income as Capital Gains but then I have to pay all the expenses (mostly electricity) out of my pocket and I don't get to depreciate any of the hardware purchases. If operate it as a business then I get to write off all the expenses and I get to depreciate the cost of the hardware, however I then have to pay full income tax on the profit. Is that correct? My next question is then if I register a business and pay expenses and claim depreciation, do I have to pay taxes on all the bitcoins I mined in a year? or do I pay taxes only on the coins that I sold during the year and the rest are part of the business "inventory"?

[@akvlogs6555]

Can I reinvest my income from crypto ot equity into buying home to avoid CG taxes

[@rodsimonson9175]

Hello, what about crypto on a reservation, is it taxable or not?

[@None-ww4ec]

Do you know how much is for corporate tax on crypto?

[@adfadf9785]

Mining is a hobby like collecting pokemon cards. I don't see anyone reporting their porkemon cards holdings lols. Only reporting that should be shared with CRA is when you cash out to Cad.

[@Chap17]

Great info have u heard anything about a Company called Paraiba, any recommendation Thank you

[@goatclips175]

wow thank you for this. very informative Question: I'm planning a permanent move to canada and will have to move my fiat money. If I transfer these funds into crypto will I be able to withdraw these funds without tax implications in canada ?

[@muhammadgazaliabubakar9030]

🏐🏐🏐🏐 ＋𝟏𝟕𝟏𝟓𝟔𝟗𝟐𝟕𝟏𝟐𝟎

[@muhammadgazaliabubakar9030]

🏐🏐🏐🏐 ＋𝟏𝟕𝟏𝟓𝟔𝟗𝟐𝟕𝟏𝟐𝟎

[@aishatjimoh4510]

I will strongly advice you against self trading, it's really dangerous and had brought so many investors down, you need some one with the knowledge and strategies, someone dedicated to the crypto currency market buisness, and I will strongly recommend expert Mrs Jane

[@sandiegan3788]

If I transfer funds from a retirement fund to my crypto exchange platform, since I am a long term crypto holder, do I need to report the transfer to the IRS? My SS and other income is below the amt required to file a tax return here in the US. Thanks!

[@marin8684]

Good

[@nc3780]

what about all the fees associated with buying and selling crypto? can the fees be deducted?

[@GabrielleTalksMoney]

Yes, transaction fees can be deducted

[@pujiea]

just curious what if you borrow lets say 20k to invest in crypto and then you only cash out 20k from crypto to payback the debt. is that 20k taxable?

[@Sonickrunch]

No and you can deduct the interest paid since the money was for investing. Anything above the 20k would be a gain and since you're debt is paid off you would no longer be able to deduct the interest.

[@SirAnderr]

Will i have to provide all the transactions dates?

[@GabrielleTalksMoney]

You can export the data from your crypto exchange which automatically has all the dates!

[@aishatjimoh4510]

I will strongly advice you against self trading, it's really dangerous and had brought so many investors down, you need some one with the knowledge and strategies, someone dedicated to the crypto currency market buisness, and I will strongly recommend expert Mrs Jane

[@paulpoco22]

What about at the year end you have some crypto that is in a loss but you have other crypto that is in a gain, can I sell the loss crypto and buy it back again right away to get the loss?

[@GabrielleTalksMoney]

No, there are superficial loss rules if you buy back with 30 days

[@muhammadgazaliabubakar9030]

🏐🏐🏐🏐 ＋𝟏𝟕𝟏𝟓𝟔𝟗𝟐𝟕𝟏𝟐𝟎

[@tichen1716]

If I get capital gain from crypto can I offset this gain from my stocks capital loss or vice versa? Is stock and crypto capital gain considered the same nature?

[@Sonickrunch]

It's all the same so yes.

[@huyduong5716]

Why don’t they make it simple, like what ever amount you transfer out into fiat just tax at 20% regardless if you make or loss money, and call it a day🤔. I’m getting a headache now.

[@VideosForRen]

Thank you for the amazing video. Not sure if it wise to write off crypto capital lost. Such as lost money with ICO, the Crypto now worth $0 and unable to sell. Lost crypto from hacker, it hard to proof, but it happens. Investors can't just expect to report gains and not the lost.

[@RickWalshCleaning]

Hi Gabrielle .... I really like your videos and I think you do a great job ! ;) I am curious ... who would be your favorite person regarding USA Taxes and Cryptos on KZbin? Does anyone come to your mind? ;) -- thank you --

[@MrAveiro7]

So basically if my cryptos gains are considered business incomes , the governement take the totatility pf my gains ?

[@teeniequeenie8369]

Why would i want to give them the info tho? Would they be able to find all this if i didnt give it to them???!!!

[@oddball6969]

what crypto?...I dont own any....

[@brentjuras1492]

Yeah, me either CRA... wink, wink

[@romeonicolas1858]

SHIB is the BTC killer

[@mugenpower78]

dont cash out your crypto fully. if the bear market comes convert it to stable coins and yield farm.

[@kay__519]

Hello hello

[@matthewbermudez009]

should I just find an accountant, that knows about crypto dispositions and things of that nature? lol

[@actlike5095]

pas capable de rester concentré est trop belle..

[@campos3452]

Good lord you’re gorgeous 😌 It’s hard to pay attention 😆