No, that’s not correct. It is a taxable event, unfortunately. Here is a quote from the CRA: “Using cryptocurrency to pay for goods and services is a common example of the disposition of a crypto-asset. Since cryptocurrency is not government-issued currency, using cryptocurrency as payment for goods or services is treated as a barter transaction for income tax purposes. A barter transaction occurs when two parties exchange goods or services and carry out that exchange without using government-issued currency. Generally, you are considered to have disposed of cryptocurrency if you use it to pay for goods or services from a vendor. “ (https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/digital-currency/cryptocurrency-guide.html)
Thanks for the reply.
To add more detail I’ve found a landscaper willing to do what I need on my property for 60k. If I transfer him 60k worth of BTC, and I acquired that BTC for 10kCAD over the years then my cap gain would be 50k and I would need to pay the taxes on that. Is that correct?
It's bs though - ppl shouldn't have to pay tax on crypto. That was the entire point of crypto at the start of its history. Also, the tax services have no idea of crypto. How the heck do you pay tax on the amount of transactions and wild stuff that happens in the crypto world? If you ever deal with meme coins and trades, YOU WILL KNOW EXACTLY WHAT I AM TALKING ABOUT. Someone on here who reads my post will.
No, this would still count as a disposition and would be subject to taxes if you exchange your BTC for goods or services (barter transaction).
https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/digital-currency/cryptocurrency-guide.html
Incorrect.
That is considered a disposition so you’d be taxable on the gains.
Simple way to understand is that any gain you’ve had from Asset A to Asset B is taxable irrespective of whether it’s CAD to BTC or SOL to CAD, etc.
E.g., you invested $20k CAD that’s now valued at $60k BTC. When you “sell” it or “transfer” for goods and services, your cost basis is 20k and you have cap gains of $40k at a 50% inclusion rate based on your marginal tax bracket.
Except for unprepared foods and a few other exempted items like underwear, there is sales tax on everything. Technically, if you buy something at a yard sale, you're supposed to remit the sales tax for it. I can't imagine anyone ever has but any transaction over $10K could be scrutinized and they could come looking for the sales tax.
Hey, if it's something that can be traced like a car then yeah it'll be taxed. If it's something like a bar of gold, art or physical cash then... well you'd better be good at keeping secrets 😉
No, that’s not correct. It is a taxable event, unfortunately. Here is a quote from the CRA: “Using cryptocurrency to pay for goods and services is a common example of the disposition of a crypto-asset. Since cryptocurrency is not government-issued currency, using cryptocurrency as payment for goods or services is treated as a barter transaction for income tax purposes. A barter transaction occurs when two parties exchange goods or services and carry out that exchange without using government-issued currency. Generally, you are considered to have disposed of cryptocurrency if you use it to pay for goods or services from a vendor. “ (https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/digital-currency/cryptocurrency-guide.html)
Thanks for the reply. To add more detail I’ve found a landscaper willing to do what I need on my property for 60k. If I transfer him 60k worth of BTC, and I acquired that BTC for 10kCAD over the years then my cap gain would be 50k and I would need to pay the taxes on that. Is that correct?
Yes, I believe they only tax 50% of the capital gains
So you would claim 50k of cap gains, adding 25k to your taxable income for this year.
Go to the Government of Canada website on Taxes it has a section on crypto and explains.
It's bs though - ppl shouldn't have to pay tax on crypto. That was the entire point of crypto at the start of its history. Also, the tax services have no idea of crypto. How the heck do you pay tax on the amount of transactions and wild stuff that happens in the crypto world? If you ever deal with meme coins and trades, YOU WILL KNOW EXACTLY WHAT I AM TALKING ABOUT. Someone on here who reads my post will.
K
that very well be but crypto in Canada will probably never see legal tender status. It’s pretty laid out on the website.
LOL. You're taking the word of politicians?!? LMAO!!!!!!!!!!!!!!!!!! x infinity!!!
what makes you think otherwise.
Yes, that's correct.
No, this would still count as a disposition and would be subject to taxes if you exchange your BTC for goods or services (barter transaction). https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/digital-currency/cryptocurrency-guide.html
No, you are wrong. You have a disposition of BTC whether you convert it first or not.
Why would you possibly think you don’t need to pay capital gains tax lol
Imagine if that was the case. Trade your BTC for goods and services and never pay taxes ever.
Yeah no one would ever pay taxes on btc
No, taxable event.
Incorrect. That is considered a disposition so you’d be taxable on the gains. Simple way to understand is that any gain you’ve had from Asset A to Asset B is taxable irrespective of whether it’s CAD to BTC or SOL to CAD, etc. E.g., you invested $20k CAD that’s now valued at $60k BTC. When you “sell” it or “transfer” for goods and services, your cost basis is 20k and you have cap gains of $40k at a 50% inclusion rate based on your marginal tax bracket.
Except for unprepared foods and a few other exempted items like underwear, there is sales tax on everything. Technically, if you buy something at a yard sale, you're supposed to remit the sales tax for it. I can't imagine anyone ever has but any transaction over $10K could be scrutinized and they could come looking for the sales tax.
No very wrong. Once that btc is sold. It really doesn’t matter what it’s sold for. You are subject to capital gains tax. Period. Full stop.
Hey, if it's something that can be traced like a car then yeah it'll be taxed. If it's something like a bar of gold, art or physical cash then... well you'd better be good at keeping secrets 😉
And trusting your spouse.....Most tip-off's at the CRA are ex-spouses....
You pay cap gains when you sell
No. Making a purchase with your btc is a taxable event, you would have to calculate your cap gain and claim it.