Cryptocurrency Yes we take them!

PatchRat said:
Thats kind of the whole point of crypto currency in my understanding. If you do it right, the government can't track it. It's electronic bartering. The retailer can claim the income if they choose to, but they can also hold it as an asset and only claim it if / when they cash out.
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Yes and no. The owner of a particular address may be anonymous, but the transactions themselves can 100% be tracked in the blockchain. If a name then happens to get tied to said address, every transaction made from that address can be tracked in full.
A lot of exchanges have “Know you customer” policies/laws which must be followed and tie your account to you.
 
PatchRat said:
Thats kind of the whole point of crypto currency in my understanding. If you do it right, the government can't track it. It's electronic bartering. The retailer can claim the income if they choose to, but they can also hold it as an asset and only claim it if / when they cash out.
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This is where I was going with this. I'm sure all retailers will claim it, as I would, of course.




:rolleyes:
 
JonJonM said:
It would be business income for them, not capital. And the transactions are still subject to GSTHST
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I guess I'm wondering how it would be business income, because it really isn't in the form of legal tender. I can see where the government would want to see it that way, but since no one is required to accept cryptocurrency, it's value is questionable to say the least.
 
All in fun said:
I guess I'm wondering how it would be business income, because it really isn't in the form of legal tender. I can see where the government would want to see it that way, but since no one is required to accept cryptocurrency, it's value is questionable to say the least.
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Since it is not legal tender, they treat it as a barter transaction for tax purposes... for both parties.

From their standpoint, if I buy 1 BTC for $1...then use that 1 BTC to buy something and BTC is now worth $100... I still have tax to pay on the $99 gain which I got. That $99 could be taxed as a capital gain, or it could be taxed as income. That will depend on whether they deem that I am an investor or a trader. Which bucket you land in there... well that can get convoluted.
 
If I understand it right, if you bought 1btc for $1 and pay in BTC then it's barter and no tax. If you cash out and value is higher than $1 then you pay taxes. Go to cra web site and search for crypto info there.
https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/digital-currency/cryptocurrency-guide.html
 
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Guys, crypto is tracked and taxed by the feds. you buy it, receive it in a registered account that is linked to your social like a TFSA or RRSP. If you buy or hold crypto and it increases in value it’s increased value is taxed as capital gains. The one thing I don’t understand is once you take it off the exchange (in a cold wallet), how can they track what you have or what it sold for?
 
AMET said:
Guys, crypto is tracked and taxed by the feds. you buy it, receive it in a registered account that is linked to your social like a TFSA or RRSP. If you buy or hold crypto and it increases in value it’s increased value is taxed as capital gains. The one thing I don’t understand is once you take it off the exchange (in a cold wallet), how can they track what you have or what it sold for?
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When you take your crypto offline, you can still generate “unsigned” transactions to spend it. You need to have your cold wallet validate the transaction to actually process it. That means passing the transaction to the wallet to sign it and then send it back to the blockchain. To get it to the blockchain you need an account somewhere, which is tied to you. They may not know what you have, but they know that you transacted. Should they come knocking, all of the onus is on you to prove what your sell price and average cost basis is.
Track every purchase of crypto in excel or something and keep a rolling average cost to reference, should it be required for tax purposes.
 
Thank you Durhamoutdoors for taking a leadership roll for advancing the cryptocurrency movement. Much like firearms and ammunition, cryptocurrencies are anti-inflationary. No matter how much borrowed money Trudeau and his yes-people pump into the economy, cryptos have scarcity value. Bullseye North, Wolverine Supply, Calgary Shooting Centre, Tenda, Al Flaherty's, Wanstalls, Prophet River, Firearms Outlet Canada, what are you waiting for?...
 
sunwood76 said:
Thank you Durhamoutdoors for taking a leadership roll for advancing the cryptocurrency movement. Much like firearms and ammunition, cryptocurrencies are anti-inflationary. No matter how much borrowed money Trudeau and his yes-people pump into the economy, cryptos have scarcity value. Bullseye North, Wolverine Supply, Calgary Shooting Centre, Tenda, Al Flaherty's, Wanstalls, Prophet River, Firearms Outlet Canada, what are you waiting for?...
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They will all except Crypto before the end of the year.
 
verminaard said:
When you take your crypto offline, you can still generate “unsigned” transactions to spend it. You need to have your cold wallet validate the transaction to actually process it. That means passing the transaction to the wallet to sign it and then send it back to the blockchain. To get it to the blockchain you need an account somewhere, which is tied to you. They may not know what you have, but they know that you transacted. Should they come knocking, all of the onus is on you to prove what your sell price and average cost basis is.
Track every purchase of crypto in excel or something and keep a rolling average cost to reference, should it be required for tax purposes.
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Thanks for the info, the government should keep there hands out of the crypto jar....
 
Agree that govt must keep their hands away from the tracking and administration of cryptos but we must not look at this as a tax loophole. It is very easy for the govt to shut down e-transfers and credit card payments from our accounts to crypto exchanges. Pay the HST and capital gains from crypto transactions to the CRA. We will be better off in the long run when our currency is worthless because the Liberal govt has printed 3 dollars for every 1 dollar of lost income due to the pandemic.
 
Great news. I will pass on the info to some friends that are into cypto coins. They seem like they are itching to start using it as currency. You can buy a Ford at my work with dogecoin, Bitcoin,ETH,LTC. Everyone will get into it soon.
 
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Crypto is indeed trackable, outside of (arguably) a few specialised privacy coins (example: Monero/XMR = https://www.getmonero.org/ ). A business needs to play it smart & pay taxes on it, same as fiat transactions.

Bitcoin & Ethereum (2 biggest cryptos) are immutable transactional records. Anyone can look up any & all transactions online ( https://etherscan.io/ & https://www.blockchain.com/explorer are two) or even verify everything themselves on their own computer, if they wanted to.

The Canadian Government has already done some testing a few years ago (IDK what's next, haven't heard anything), and you can see for yourself one of the implications of crypto (this is one I'd love to see - public tracking of government funds) Just to illustrate the reality of crypto. It's a thing.

https://nrc-cnrc.explorecatena.com/en

Anyway, I just bought a bunch of black guns with Monero but they got lost in transit, cargo ship sunk I think. Tragic boating accident.
 
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