Cryptocurrency Tax Solutions

Look, crypto taxes are confusing - we get it. Between trading on three different exchanges, those random airdrops, and that DeFi yield farming you tried last year, your tax situation probably looks like a mess right now. We've been helping crypto folks in Vancouver sort this out since 2017, and honestly? We've seen it all.

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Crypto Tax Planning

Your Crypto Scenario

Different crypto activities = different tax implications. Pick what sounds like you:

Crypto Trading & Capital Gains

So you've been trading crypto? The CRA treats most crypto transactions as either business income or capital gains. Here's the thing - which one applies to you makes a HUGE difference on your tax bill.

  • Every trade is a taxable event (yeah, even crypto-to-crypto swaps)
  • We help determine if you're trading as a business (100% taxable) or investment (50% taxable)
  • Track your adjusted cost base across multiple wallets and exchanges
  • Handle those nightmare scenarios where the exchange shut down and you lost your records

What we do: Pull all your transaction data, calculate your actual gains/losses (often less than you think!), and file everything properly so the CRA doesn't come knocking.

Mining & Validation Operations

Running mining rigs or validating blocks? You're technically running a business in the CRA's eyes, which actually opens up some pretty good deduction opportunities.

  • Write off your hardware, electricity, and cooling costs
  • Home office deductions if you're mining from your place
  • Income recognition at fair market value when you receive the coins
  • Capital gains treatment when you eventually sell them

Real talk: I've seen miners save thousands by properly structuring their operation. That power bill? It's deductible. Those GPUs? Depreciable assets. Let's set this up right.

DeFi, Staking & Yield Farming

Welcome to the wild west of crypto taxation. The CRA hasn't published super clear guidance on this stuff yet, but we've developed solid strategies based on existing tax principles and what we're seeing work.

  • Staking rewards - typically income when received
  • Liquidity pool tokens and impermanent loss calculations
  • Yield farming rewards across multiple protocols
  • Wrapped tokens and bridge transactions
  • Gas fees as part of your cost base

Honestly? This is complex stuff and you don't want to wing it. We track every swap, stake, and claim so you're covered if the CRA ever asks questions.

NFTs & Digital Collectibles

Bought, sold, or created NFTs? The tax treatment depends on whether you're collecting or trading as a business. And if you're a creator? That's a whole different ballgame.

  • NFT sales - capital gains vs business income determination
  • Creators and royalty income tracking
  • Minting costs and gas fees in your cost base
  • Free mints and airdrops (yes, they're taxable)
  • Marketplace fees and creator earnings

Creator-specific help: If you're minting and selling your own work, we'll help structure things so you're paying the right amount - not too much, not too little.

Business Crypto Transactions

Accepting crypto payments for your business? Paying contractors in crypto? Holding crypto on your company's balance sheet? This needs careful handling.

  • Revenue recognition for crypto payments (hello, volatility issues)
  • GST/HST implications on crypto transactions
  • Corporate treasury management and fair value reporting
  • Payroll and contractor payments in cryptocurrency
  • International transactions and transfer pricing

For startups: If you're a Web3 company or holding crypto on your balance sheet, we handle the financial reporting side too. Your investors will thank you.

Quick Tax Impact Calculator

Get a rough idea of your potential tax liability. This isn't financial advice, just a ballpark figure to help you plan:

Common Questions We Get

Real questions from real clients. If you're wondering about it, chances are we've dealt with it before.

Short answer: yes. Long answer: yes, but we make it easier. The CRA wants to know about every disposition of crypto - that's every trade, sale, or swap. Even trading BTC for ETH counts. We use specialized software that pulls data from exchanges and calculates everything automatically, so you don't have to manually track thousands of transactions. Trust me, it's worth doing right the first time.

Absolutely, and you should! Capital losses can offset other capital gains (not just crypto - stocks, real estate, etc.). You can carry losses back three years or forward indefinitely. Had a rough year when that altcoin tanked? Let's make sure you're claiming those losses properly. We've helped clients recover thousands in tax refunds from previous years.

Yeah, you do. Just because Uniswap doesn't send you a T5008 doesn't mean it's not taxable. The CRA doesn't care if the exchange is centralized or decentralized - a taxable transaction is a taxable transaction. The good news? We can pull your wallet history from the blockchain and figure out what happened. It's actually more transparent than traditional exchanges in some ways.

This is huge. Capital gains? Only 50% is taxable. Business income? 100% is taxable. The CRA looks at factors like trading frequency, time spent, expertise, and financing. If you're day-trading full-time, they'll probably call it business income. Buying and holding? Likely capital gains. There's a grey area in the middle where strategy matters. We help position your activities in the most favorable (but still legitimate) way.

If you're treating crypto as business income, then yes - hardware wallets, portfolio tracking software, trading platform fees, even educational courses can be deductible business expenses. For capital gains investors, it's trickier but some carrying costs might be deductible. This is where proper documentation and structure really pays off.

Don't panic. You're not the first person to ask us this, and you won't be the last. The CRA has a Voluntary Disclosures Program that can help you get compliant with reduced penalties - or sometimes no penalties at all. The key is coming forward before they come to you. We've walked several clients through this process and it's always better to deal with it proactively than wait for an audit letter.

It depends on complexity - how many transactions, how many exchanges, what types of activities. Simple scenarios (one exchange, mostly buy-and-hold) might be $500-800. Active traders with DeFi positions across multiple chains? Could be $2000-3000+. But here's the thing: we often find mistakes or missed deductions that save way more than our fee. Plus, peace of mind knowing it's done right? Priceless. Let's chat about your specific situation.

Client Success Stories

Let's Get Your Crypto Taxes Sorted

Whether you're sitting on unreported gains from years ago or just want to make sure this year is done right, we're here to help. No judgment, just solutions.

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30-minute intro call to discuss your situation

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Fixed-fee pricing based on your complexity

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Know everything's accurate and defensible

Contact Us (604) 555-2847