Is bitcoin taxable in Canada?

Yes, all cryptocurrencies are considered digital assets by the CRA. As an asset, cryptocurrency is taxed like an investment. What matters are your profits and losses from buying and selling bitcoin, not how much the bitcoin you're holding is worth.

Do I have to pay GST/HST on products or services that I purchase with cryptocurrency?

Yes. According to the CRA, when taxable items or services are exchanged for cryptocurrency, the amount of GST/HST charged on the transaction is based on the fair market value of the crypto at the time it's exchanged. So, if you live in Ontario and a retailer agrees to let you buy a new sound system for $1,000 worth of Bitcoin, you'll be charged $130 sales tax (13% of $1,000). Even if the sound system is actually worth a different amount, sales tax is still calculated based on the value of the crypto received.

What should I do if I have multiple types of cryptocurrency?

If you have more than one type of cryptocurrency, you'll need to treat each type of cryptocurrency as a separate digital asset for tax purposes. This means all types of coins must be valued separately (for example, Bitcoin needs to be valued separately from Ethereum).

I've heard that crypto transactions fall under the like-kind exchange rule. Is that true?

Not in Canada. While cryptocurrency can in some circumstances be classified as "like-kind property" under American tax law, it's treated differently in Canada.

I've traded on crypto exchanges outside Canada. Will I need to pay foreign taxes?

Possibly. You may have to pay income tax in other countries as well as in Canada. However, many countries have tax treaties with Canada to prevent double taxation. Speak to a cryptocurrency tax specialist to find out exactly what rules and exemptions apply to your situation.

What should I do if I don't have records of my crypto transactions?

You can access historic price information from reputable websites that publish daily conversion rates for BTC/AUD, ETH/AUD etc. Your crypto exchange should also be able to provide you with details of your transaction history.