Disposing of cryptocurrencies
You may sell your cryptocurrency for a profit or loss.
When you sell your cryptocurrency, this is called disposing of it. And when you do, there can be tax implications.
The profit that you earn from the sale or trade of cryptocurrency is taxable as either capital gains or business income, and you need to report that income on your tax return. To ensure correct reporting, you must keep accurate records of your purchases and sales of cryptocurrency.
How to correct your tax affairs
If you did not report your income or capital gains from transactions in cryptocurrency, you may have to pay tax, penalties and interest on that income or capital gain. You can avoid or reduce penalties and interest by voluntarily correcting your tax affairs. To correct your tax affairs (including corrections to GST/HST returns) and to report income that you did not report in previous years, you may:
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