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How to report Bitcoin and Cryptocurrencies to Canada Revenue Agency

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  • How to report Bitcoin and Cryptocurrencies to Canada Revenue Agency

    Click image for larger version  Name:	bitcoin-TaxReportsMadeEasy.png Views:	1 Size:	22.5 KB ID:	1266



    Reporting bitcoin earnings at tax time is a topic that had been on my mind for the past while.

    So I figured I would start a draft post and journal the process I'm following as I prepare all the numbers for my bookkeeper. And collect a list of information links. (also read Canada and Bitcoin, Best and Worst Canadian Bitcoin Exchanges)


    Create a list of bitcoin income sources
    CoinBase Wallet - all faucet earnings arrive here
    NiceHash Earnings
    Hashflare Earnings
    1Broker Earnings
    StorjX Cloudshare Earnings
    QuadrigaCX Canadian Bitcoin Exchange, btc and fiat
    LumbridgeCity Membership Earnings, btc and fiat
    DigitalCurrencyTraders Course Income


    Create a list of losses/expenses
    Coince - lost money in a scam
    Traffic ads, promoted videos on youtube



    Create a list of Trading Accounts

    Poloniex
    • LumbridgeCity Main
    • LumbridgeCity Mini
    • FaucetGuy Holdings
    • Lending/Holding Account
    1Broker Trading

    Taking Stock Of What I Need To Organize For My Accountant At Tax Time

    It will be pretty easy to tally up all the Bitcoin income from each source, and subtract the expenses from the income.

    Everything seem manageable until I start to consider the cryptocurrency trading history on Poloniex.
    • I'll update my spreadsheet of my current cryptocurrency holdings, with entry prices and dates for some sixty different altcoins.
    • I'll match the price of bitcoin on the date that I did the trade, and calculate the equivalent USD values.
    ... and that will work well for three of the four accounts on Poloniex because they have been buy-and-hold/lend accounts.

    However one of my trading accounts on Poloniex has been very actively buying and selling.

    Articles and Resources - How Investors And Speculators Report Profits On Tax Returns in Canada

    Canada Revenue Agency: What you should know about digital currency

    How to report digital currency to CRA - an informative article with many tidbits, including:

    Tax Rules For Bitcoin Miners: Bitcoin mining is a taxable business, says CRA. Tax is payable on the fair market value of your inventory at the end of the year.


    How to report your bitcoin earnings for the CRA, for Canadians with Bitcoin and Digital Currencies
    Article Update:

    Poloniex Trade Tracking made easy with CoinTracking.

    Everything is ready for the accountant to prepare your taxes until you mention your trading on Poloniex. You find out that you'll need profit/loss statement for each trade - that is converted to Fiat using the Bitcoin exchange rate of that day.

    You Export the Trade History from Poloniex, upload it to Google Docs - and... there are hundreds of buy and sell orders in 60 different currencies.

    What to do?

    Starting with the assumption that thousands of other traders are facing this same delema... I went in search of a conversation somewhere that would lead me to a spreadsheet or something that would make this easier.

    Poloniex Profit/Loss Reporting: Several older articles on BitcoinTalk.org, and an excel-sheet for the tradehistory.csv export from poloniex that was over my head... but nothing yet.

    I searched 'calculate profit loss on poloniex' - and found a video with the same title, but not explaining the solution to me... so I know that others are searching without luck, and that a youtube video would gain a lot of traction.

    Poloniex Trade Reporting

    Finally I uncovered a trading tool that I should have been using right from the start. (if you know of another, please leave a comment below!)

    CoinTracking is an unassuming site. I signed up for free - and the more I explored the site, the more I realized that everyone who is trading cryptos will need a reporting tool exactly like this.

    CoinTracking calculates all your trades exact to the cent and prepares them automatically, so that they only have to be attached in the tax return. Our tool is designed to adapt to the laws, financial statements and forms of different countries
    Referral Discount Bonus

    Join through my referral link - and track up to 200 trades for free - AND - get a nice 10% discount for all Account Upgrades.

    Ideal for active traders who have multiple accounts, link multiple trading accounts with one Account Upgrade!

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    • How to report Bitcoin and Cryptocurrencies to Canada Revenue Agency
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      Reporting bitcoin earnings at tax time is a topic that had been on my mind for the past while.

      So I figured I would start a draft post and journal the process I'm following as I prepare all the numbers for my bookkeeper. And collect a list of information links. (also read Canada and Bitcoin, Best and Worst Canadian Bitcoin Exchanges)


      Create a list of bitcoin income sources
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      NiceHash Earnings
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