I read on the news feed a while back that Canadian fed government will be imposing new reporting rules for crypto, does that mean there is no law saying we HAVE to report our earnings? How exactly does CRA keep track of anyone’s crypto earnings? I was under the impression that crypto currency is to one of few ways to keep “them” minding their business. Can someone me understand that part.
New to BTC (Crypto in general), got some questions
- Thread starter simonw
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Its like any investment. If you sell, and make a profit, you pay capital gains on it.
It is if you do it right
If you don’t then it’s like a stock
Associated to your name and bank account and your Pnl is all there for them to tax you or put against your other income if loss
Be A Man
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If you live in Canada you have to report your earnings made with bitcoin and some other crypto, except if all you own is staying on an exchange, not a holding(a wallet). As long as you are dancing "processing" the results might be gains or might be loss. I don't know if there are new rules to be set in place it might change a lot in the years to come, i need to catch up but here is what I know.
They don't really track the process unless suspected of fraudulent operations, but they track results. They keep tracks of what you send and receive from and to your bank, banks using your identity or business name, names.
The result is the maths between what you sent, and what you received from source to source. That is the "earnings" part to declare, is it a profit or is it a loss? Now..if you putted in a small amount, $500 in june and take out $100 in december...do you need to declare that...will they do something about it, probably not. If you putted in $500 and take out $20 000 that is $19 500 earned, it needs to be declared.
But now lets say the money is still in the exchange, it is now used as the primary tool to "create" or "loose" more money, it is not a gain "yet".
There are a lots of other scenarios, if you plan to jump in the exchange with a $100 000 deposit for bitcoins, you will have to answer a lot of questions if you are "inside" Canada. We live in a bubble. If you plan to buy $100 000 worth of coins like Monero from an island in the caribbean, nobody in the world would know a thing if you know how to get you gains out, anonymously. Your bank account is for sure not anonymous, anywhere your name is linkable to money isn't.
If you want them to "mind their business", be out of their business. The best plan is for you to travel, meet a girl who don't know your name at the club, you give her the cash and a tip, she buys Monero with your cash, then she send those Monero to your personal anonymous wallet, a wallet like "Exodus". You then leave the country and never go back. You are now anonymous. If you want to know more about Exodus wallet or many other things about crypto you can visit my website. https://crypto-news.click/exodus-wallet/ , there will be lots of updates there very soon.
Also good for everybody to remember, using bitcoin and lots of other crypto is far from anonymous. Everybody in the world can access and see live data about your bitcoin wallet, including the amount of bitcoin in the wallet, including the amount you send and receive, including which account it was sent to or received from.