Crypto Taxes: Books and Record keeping

Updated: March 24, 2021

If you acquire or dispose of cryptocurrency, you have to keep records of your cryptocurrency transactions.

You are responsible for keeping all required records and supporting documents for at least six years from the end of the last tax year they relate to. Canada Revenue Agency says you should maintain the following records on your cryptocurrency transactions:

• the date of the transactions
• the receipts of purchase or transfer of cryptocurrency
• the value of the cryptocurrency in Canadian dollars at the time of the transaction
• the digital wallet records and cryptocurrency addresses
• a description of the transaction and the other party (even if it is just their cryptocurrency address)
• the exchange records
• accounting and legal costs
• the software costs related to managing your tax affairs.

Buying cryptocurrency is not a taxable event

The sales of crypto must be reported to CRA

Proceeds minus the average adjusted cost base

All crypto gains and losses are reportable

Keep records of your cryptocurrency transactions

Capital gains and losses vs. Business income