MINE. BUY. SPECULATE.
- Do you earn cryptocurrency from your mining business?
- Have you bought something, such as a cellphone, using cryptocurrency?
- Do you buy and sell cryptocurrency regularly to profit when its value rises?
True or false?
False! Your cryptocurrency transactions leave a trail. Even if your personal information isn’t kept in a conventional register, all your transactions are recorded in the cryptocurrency’s blockchain. This means that your transactions have a unique signature that can be used to identify you.
False! In your annual income tax return , you must include all your income—whether it’s a gain from various investments, the sale of stocks or cryptocurrency transactions.
Unlike transactions with traditional financial institutions (banks, credit unions, etc.), you won’t get information slips for your cryptocurrency transactions each year. It is up to you to keep a record of your transactions, so that you can include your gains and losses in your next income tax return.
False! Cryptocurrency losses can be deducted under special rules when calculating your income.
Check out this video if you use cryptocurrency.