The post Crypto Taxes in Canada: Ultimate Guide 2024 appeared on BitcoinEthereumNews.com.

Canada has a well-developed cryptocurrency market with numerous regulated exchanges and a growing number of cryptocurrency investors. As cryptocurrency becomes increasingly mainstream, the subject of cryptocurrency taxes is becoming ever more relevant. In this article, we will provide a quick explanation of crypto taxes in Canada and address some of the most common questions Canadian crypto users have about taxes. What are the crypto taxes in Canada? In Canada, income from cryptocurrency-related transactions is either considered as a capital gain or as business income.  50% of the capital gain made from cryptocurrency investing is taxable. For example, if you purchased $10,000 worth of Bitcoin and sold it for $15,000 after it increased in price, taxes would only apply on $2,500 of your profit (you still have to report the entire $5,000 gain).  On the other hand, 100% of the business income from cryptocurrency is taxable. The more active you are as a cryptocurrency trader and the higher your profits, the greater the likelihood that your crypto profits will be considered business income rather than capital gains. In Canada, capital gains from cryptocurrency investing are subject to the same tax rates as the federal income tax and the provincial income tax. Here is the federal income tax breakdown for 2024: Taxable income threshold Rate First $55,867 of taxable income 15% $55,867 – $111,733 20.5% $111,733 – $173,205 26% $173,205 – $246,752 29% $246,752 and above 33% Of course, there are also provincial and territorial tax rates that apply in addition to the federal income tax. For a full breakdown of provincial and territorial tax rates, please consult this article.  With the exception of Quebec, the provincial income tax in all provinces is calculated in the same way as the federal income tax. Taxable and non-taxable events for crypto investors in Canada…

---

Filed under: News - @ June 21, 2024 3:30 pm