by on March 16, 2017
Considering Bitcoin from a tax perspective
You need to track the price you bought in and your exit to calculate capital gains. This includes exiting your bitcoin position in an exchange like Poloniex or Bitfinex - as well as 'exiting' your bitcoin trade by purchasing something.
And you may ask... I bought some things with Bitcoins directly, do I owe taxes?
Or you may wonder... When doing my Taxes, do I have to report every thing I buy with Bitcoin?
The short answer is Yes.
But the items you may have purchased with bitcoin and digital currencies may not be the most difficult things to account for...
You are also required to keep records of all your bitcoin and digital currency trades.
Reporting your bitcoin on your taxes includes the initial cost, sale amount, profit or loss reporting and any trading fees. Losses can be written off, and profits are subject to potential capital gains taxes. This is complicated, especially after thousands of trades across dozens, or even hundreds of different digital currencies, as you must report the gains made for each individual trade, converted to Canadian Dollar!
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To Your Success,
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