Anyone know if I'd get in trouble with taxes for cashing out old crypto?

Business Forum Personal Finance
1

I’ve been holding onto some crypto since way back in 2017. Missed a good time to sell in 2021, and then got too nervous to do it again. Here we are after the election, and I’m just ready to cash out at around $6000. Not all-time high but close enough for me.

I honestly don’t remember how much I originally put in - maybe $1K or $2K. At the peak in 2021, it was about $12K. Not interested in a complicated tax calculation; just want to cash out and buy a nice washer and dryer before the end of the month.

So, does anyone know if this will trigger any alarms with the CRA if I transfer the $6K straight to my bank account?

2

Why are you talking about a capital loss? If you bought it for less than you’re selling it for, that’s actually a capital gain. Even if it went up to $12K and dropped back down to $6K, you didn’t lose anything since you’re still selling for more than you paid.

3

@Sai
But doesn’t it count as a tax deduction? :joy:

We seriously need more tax lessons in school.

4

Zuri said:
@Sai
But doesn’t it count as a tax deduction? :joy:

We seriously need more tax lessons in school.

Who’s writing this off?

5

Avery said:

Zuri said:
@Sai
But doesn’t it count as a tax deduction? :joy:

We seriously need more tax lessons in school.

Who’s writing this off?

The write-off experts, obviously!

6

@Ozzy
Probably the people who handle write-offs… underwriters or undertakers :joy:

7

@Ozzy
So, if I need to buy drinks to get through work, can I write that off too?

8

Avery said:
@Ozzy
So, if I need to buy drinks to get through work, can I write that off too?

Just write it off! Save even more by picking up a new Ford Raptor to haul the drinks.

9

Avery said:
@Ozzy
So, if I need to buy drinks to get through work, can I write that off too?

That goes under ‘business expenses’ with a nice cover note, they’ll pretend they never saw it!

10

Avery said:

Zuri said:
@Sai
But doesn’t it count as a tax deduction? :joy:

We seriously need more tax lessons in school.

Who’s writing this off?

No idea… probably the mysterious write-off people!

11

Yep, it’s taxable. You need to claim it as a capital gain.

12

Ren said:
Yep, it’s taxable. You need to claim it as a capital gain.

If you don’t know the exact amount you spent on it, just assume you spent $0. Calculate gain from that.

13

Ren said:
Yep, it’s taxable. You need to claim it as a capital gain.

This isn’t true, no need to worry.

14

Eli said:

Ren said:
Yep, it’s taxable. You need to claim it as a capital gain.

This isn’t true, no need to worry.

Where are you getting this info?

15

Lizz said:

Eli said:
Ren said:
Yep, it’s taxable. You need to claim it as a capital gain.

This isn’t true, no need to worry.

Where are you getting this info?

Oops, ignore my comment. The rules changed, and I wasn’t up to date.

16

@Kai
Can’t find that rule anywhere. Doesn’t matter now, I guess.

17

Lizz said:
@Kai
Can’t find that rule anywhere. Doesn’t matter now, I guess.

This was about the capital gains rules a few years back. Made a mistake on my end, sorry.

18

Kai said:

Lizz said:
@Kai
Can’t find that rule anywhere. Doesn’t matter now, I guess.

This was about the capital gains rules a few years back. Made a mistake on my end, sorry.

The rules didn’t change, you probably just skipped reporting and got lucky.

19

@Jonas
Nope, I actually reported it. Checked my old forms, but I was mistaken about the rules.

20

Kai said:
@Jonas
Nope, I actually reported it. Checked my old forms, but I was mistaken about the rules.

50% inclusion on capital gains means you should’ve only paid 25% on that profit at most, assuming top tax bracket.