Quote:
Originally Posted by desiboy
Not sure if this is the right place to post this question, but how do I calculate my cryptocurrency capital gains when filing my taxes? I bought 0.5 bitcoin ($8k) a few months ago, and then later diversified into a few different altcoins on different exchanges. It is theoretically worth approx. $20k on paper. Now if I cash out a portion of my portfolio (10%), how do I report that to CRA?
Thanks!
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In theory, you're probably supposed to treat each transaction, even the ones where you buy one coin with another, as a taxable event and record the profit or loss.
But in practice (especially with small dollar amounts), you could probably get away with only considering the transaction to fiat currency. In which case, the cost base for your portfolio is $8K. If you sell 10% of your portfolio, then your gain is $2000-($8K*10%).