/biz/ - Business & Finance

[Anonymous No.29389119]

>Canadian
>made 800 transactions in 2020 and $25k profit
>reporting my gains as capital income (50% of gains taxable)
What are the chances the CRA audits me and says it was business income?

[Anonymous No.29389373]

>>29389119
Bro, don't withdraw anything and move to a country with crypto tax incentives like poortugal

[Anonymous No.29389458]

>>29389119
If they audit you and ask for transaction history and then see 800 trades, you can be sure that they will hit you with the "pattern day trader" label. Meaning it will be classified as business income

[Anonymous No.29389483]

>>29389373
Whats the tax in Portugal?

[Anonymous No.29389529]

>>29389119
0

[Anonymous No.29389551]

>>29389119
>What are the chances the CRA audits me
Probably not as high as one would think.
If you report anything, they are happy. Do you think they WANT to work? If they audit you, then it would mean work, and difficult work because it involves crypto. They don't like work. If you read the fine print, you'll note they don't care about details (i.e. number of transactions) they just care about the gross turnover.

[Anonymous No.29389617]

>>29389119
You havent made profit until you cashed out

[Anonymous No.29389651]

I heard they don't audit if they don't think they can make at least 10K

[Anonymous No.29389681]

>>29389458
>>29389529
>>29389551
Do you think it's going to be a red flag if my salary is $65k but I'm reporting an additional $12.5k of capital gains? I'm reporting the cost basis and profits for each coin individually. I don't want to have to give them an extra $4k if they decide I'm running a business (I'm not).

[Anonymous No.29389737]

CRA is absolutely butt blasted this year because of all the COVID relief
just report and they wont even care beyond that.
worst that can happen is they audit and then get more from you, but best case nothing happens.

[Anonymous No.29389845]

>>29389681
>Do you think it's going to be a red flag if my salary is $65k but I'm reporting an additional $12.5k of capital gains?
Is that all? PPffftttt... You're fine, bro. Just report the GROSS transactions, not detailed.

[Anonymous No.29389899]

they are gonna be desperate to make money in the coming years, you are gonna get assblasted

[Anonymous No.29389916]

>>29389119
2% chance. They're not very smart and they certainly don't work hard.

[Anonymous No.29389928]

How the fuck does this make ANY sense? The only reason to buy stocks is to profit.

[Anonymous No.29390143]

>>29389483
0 lol

[Anonymous No.29390157]

>>29389681
>$12.5k of capital gains?
jesus you're a fucking faggot. Stop being a bitch. Do you really think theyll care about your 10k, 2020 was one of the best year investment wise crypto or stocks.

[Anonymous No.29390214]

>>29389928
If you get classified as a business, then it opens the door to glorious tax write-offs.
It's just some more paperwork and math to get to the same end result.

[Anonymous No.29390233]

>>29389483
If I end up making enough money out of this, that's what I'm gonna try to do. Basically this is the info : "The Portuguese law stipulates that gains from the buying or selling of cryptocurrency should not be subject to VAT. Beyond this, there is no other specific legislation on cryptocurrency." VAT means tax

[Anonymous No.29390311]

>>29389928
Whats the difference between how buisness is taxed and how a regular goy is taxed.
?

[Anonymous No.29390390]

>>29389737
They aren't going to bother checking anyone for covid relief fraud unless they reported an unreasonable income desu

[Anonymous No.29390425]

>>29389119
Your only taxed on 50% of your profit in Canada

[Anonymous No.29390448]

>>29390311
Businesses can write-off things like housing (office) rent, internet and phone, electricity, gas, etc. etc.
Joey Goyboy can't do that.

[Anonymous No.29390471]

>>29390233
Portugal is full of North African nigger hybrids.

[Anonymous No.29390696]

>>29389551
CRA massively understaffed chances are you are okay tho they generally ignore whale tax fraud criminals and pester the little guy.

[Anonymous No.29390722]

>>29390214
>>29390448
Wait, so if they classify me as a business I can claim my apartment's rent as an expense? That would actually benefit me MORE.

[Anonymous No.29390729]

>>29389119
corporations have same tax structure on capital gains up to 50k in profit so don't worry, but maybe talk to an accountant for future reference

>>29389373
>$25k profit
>upheave life and move to a different continent
what are you smoking

[Anonymous No.29390854]

>>29390425
not if its classified as a business you nigger. Don't speak on shit you don't know.

[Anonymous No.29391058]

>>29390722
>if they classify me as a business I can claim my apartment's rent as an expense?
Yes, but possibly only a portion of it. But understand, it is more paperwork and math, so it's less stressful if you just deal with it as Capital Gains.

[Anonymous No.29391064]

>>29390471
Go back to /pol/ nigger

[Anonymous No.29391155]

>>29391058
Yeah I can imagine. I'd rather they just accept my tax return as-is and leave me alone.

[Anonymous No.29391226]

>>29389681
bitch listen up.
just withdraw a small amount and keep the rest in crypto, perhaps in a stable coin.
when you make it move to portugal and enjoy tax free withdrawals.

[Anonymous No.29391329]

>>29389928
>be hobbyist crypto appreciator
>never cash out
>move
>become professional crypto appreciator
nothin personnal, CRA

[Anonymous No.29391363]

>>29389119
>he still thinks he can cash out
hahahahahaha you stupid fuck op transfer to usdt and move the country

[Anonymous No.29391387]

I was told that taxes in canada are a bit different. I was told thst 50% of your profits are added to your income and then taxes there. Is this true?

[Anonymous No.29391626]

>>29391155
>I'd rather they just accept my tax return as-is and leave me alone.
They will, so long as you don't give them anything to get concerned about. I can tell you they are reasonable, though. I've had to do taxes for private contractors who didn't file for 6+ years (that's when the red flags go up in the CRA computers), and even in those cases, they were very accommodating to the conditions of the people. Sure the fines were egregious, but even those can be whittled down through some 'discussion', as I found out.
However, it would be only tempting fate if one gets on THAT timeline. So don't try.

[Anonymous No.29391699]

>>29391363
Idiot, USDT is a taxable event. You cash out after you leave.

[Anonymous No.29391750]

>>29390311
business is only tax 10%

[Anonymous No.29391824]

>>29391750
Are you a Canuck?

[Anonymous No.29391894]

>>29391387
Yes, that's how it works, UNLESS they classify you as a business (my concern) in which case 100% of gains are added to your income.

[Anonymous No.29391942]

>>29389119
Noob trader didnt create a business to declare it as a salary and be elligible to put it in Rrsp to avoid being taxed on it.

[Anonymous No.29392015]

>>29389119
>all leafs may end up hanging simply due to their kike activity on /pol/
cant say it really matters that much bud, you all may end up hanging from light posts in minecraft

[Anonymous No.29392031]

>>29391942
I actually made a $6k contribution to my RRSP to reduce my tax owing from $4k to $2k.

[Anonymous No.29392085]

Stick it in an rrsp

[Anonymous No.29392205]

>>29389119
800 transactions in one year? You are in day trading territory fren. I think if you get audited you are 100% screwed.

[Anonymous No.29392314]

>>29391894
So lets say i earn 30k a year, i earn 60k in crypto as well. Would that mean i add 60k to my income and then i am taxed at thw bracket im now in?

[Anonymous No.29392323]

>>29389119
I've got a referral code for Newton, Canada's crypto exchange.

https://web.newton.co/r/9O7UI5

Use that link to set up your account and get $25 CAD when you trade over $100 CAD in volume.

[Anonymous No.29392407]

>>29390722
you could claim your pc and anything else you use for it

[Anonymous No.29392424]

>>29392031
good job anon, always max your rrsp

[Anonymous No.29392428]

>>29392314
If its capital gains, you add $60k/2=$30k to your income. Then you are taxed on a total of $60k income.

[Anonymous No.29392437]

>>29392314
As in instead of earning 30k that year i earned 60k

[Anonymous No.29392703]

>>29391387
That's only if it is not business income.

[Anonymous No.29392711]

>>29392428
So althought they make it sound like i would lose 50% of my peofit im actually only losing 15% of the first 19k and about 20% on the 11k extra as that would put me in a new tax bracket? Sorry just trying to fully understand here

[Anonymous No.29392836]

>>29392711
Yeah no worries Anon, I am trying to understand too. I only got into crypto in 2020 so I'm figuring out the tax aspect for the first time.

You got it.

[Anonymous No.29392933]

>>29391064
> All racists are /pol/
do you know where you are nigger?

[Anonymous No.29392970]

>>29389916
This is probably bang on. CRA is grossly incompetent lel

[Anonymous No.29392990]

>>29392836
Thats actually not bad tax rate desu, not great but in comparrison to what i originally thought lmao.

[Anonymous No.29393214]

>>29389119
>$25k
nigger its 25k, don't even report it lmao
imagine thinking the CRA will audit you over 25000 leafbucks

[Anonymous No.29393342]

>>29392990
Wtf i never said desu.

[Anonymous No.29393401]

>>29393342
newfag

[Anonymous No.29393431]

My accountant said I have 125,000 in taxable gains, from fucking doing crypto to crypto only. I even have something called a 'superficial loss' that makes it worse. Adding my wagie 55,780 and 11,800 in EI I made this year, and I have a total income of around 185000. I am beyond fucked. I opened an rrsp just to throw 40,000 in it to offset it. I still have to pay 25,000 out of pocket based on some online calculators (before the accountant let's me know the entire amount)

Knowing what I know now, I probably wouldn't have reported it, and if I truly make it and can retire off crypto, I'd retroactively pay what I owe from years past for zero penalties. If I somehow lose it all, well then why bother reporting it in the first place.

[Anonymous No.29393444]

>>29389373
That makes no sense for 25k. "Golden visas" are 350k and non nationals aren't even allowed entry to the EU due to coof.

[Anonymous No.29393469]

FWIW the IRS also doesn’t want to see every single detail about your crypto stuff. They don’t have time for that shit and they just need to know how much you gained.

[Anonymous No.29393728]

if i made $330,000 usd in gains this year and dislike canada so much i dont want to fund their globhomo pysops, what if i simply go to Panama and SWIFT transfer my money there from glorious chinese binance, and then get a panama bank debit card
wtf can the canadian govt do to me?

[Anonymous No.29393745]

>>29393431
Is this after actually cashing out? ie eth to cad after making those gains?
I haven't cashed out and don't want to right now so I'm curious about those that aren't going to do shit.

[Anonymous No.29393869]

>>29393431
LOL
i cannot do this man
i simply cannot give the canadian govt a huge chunk of my gains

[Anonymous No.29393964]

>>29393869
>have 1 million dollars
>can only spend it on gas and cigarettes

if you truly make it, just pay your tribute to israel. That way you can actually enjoy your gains and buy shit like houses and lambos.

[Anonymous No.29394040]

>>29393745
No this is purely crypto to crypto. Cashed out a quarter link stack to eth for liquidity mining and it all snowballed from there.
Be careful what you report. I'm not trying to scare anyone but according to my accountant most of his time with crypto is just fixing fuck ups because anons get audited when they list ANY sort of crypto activity on their returns. He has never had an audit on any return he has prepared. I know why now because he fucking telling me I owe a shit ton.

[Anonymous No.29394384]

>>29394040
>get fucked by tax man if you don't report your crypto to crypto
>get fucked by tax man if you do report your crypto to crypto
what a joke

[Anonymous No.29394401]

imagine not having a unified tax system with one single value

[Anonymous No.29394408]

>>29393869
I know. It fucking pisses me off. And now I already have an $80,000 gain for this year just switching my Yearn yaLink to normal link because of the price difference from before and after leaving the pool. I honestly might not report that because it's just stupid.

[Anonymous No.29394593]

>>29394040
>anons get audited when they list ANY sort of crypto activity on their returns.
Bullshit

[Anonymous No.29394911]

>>29389119
If you’re in Toronto literally just go to the coin shack kikes on Bathurst and cash out anon. They only need ID for over 10k so do it in three different trips. Paying them 1.5% to cash you out is better than paying the cra 50%

[Anonymous No.29394988]

Just lose all your cryptos in a boating accident lmao what are you doing

[Anonymous No.29395052]

>>29394593
A lot of it is anons trying to list regular staking and pool income as capital gains. It isn't, its regular income.

[Anonymous No.29395073]

>>29394911
>>29394988
Checked and tax-dodging-pilled.

[Anonymous No.29395090]

>>29394384
I am waiting for more comprehensive laws. Crypto to crypto makes 0 sense. They don't understand it yet so why bother with them.

[Anonymous No.29395094]

>>29389119
You did everything correct. No need to worry. The kikes got their money and are happy, they will be hassling people that didn’t pay

[Anonymous No.29395111]

>>29393964
>what is an off-shore bank account with a foreign debit card tied to the identity of a panamian nanny you pay a couple gs every year to maintain your condo in panama city where you visit to check in with the bank manager every few seasons

[Anonymous No.29395192]

>>29389119
just buy TSE Cryptostar and everything will be fine

[Anonymous No.29395305]

>>29395052
>regular staking and pool income as capital gains. It isn't, its regular income.
Can you cite the Tax Code which explains how a 'dividend' is considered 'regular income'?

[Anonymous No.29395778]

>>29389458
what's the worst that can happen if a minecraft player reports 300+ transactions as capital gains and get audited by the minecraft revenue agency? Will they just take the difference as business income or can you get charged with additional penalties/criminal conviction?

[Anonymous No.29395801]

Alright someone help me out. Let's say that I make over 500k and I can declare it as capital gains. now half of that can be taxed which means that I fall into the higher ends of the brackets. That means that I have to pay about 60% tax on that right? So I need to pay about 150k in taxes total?

[Anonymous No.29396244]

>>29395801
I think it will depend on what province one is in and I don't see anything to suggest 60% regardless of which province.
https://www.moneysense.ca/save/tax-brackets-canada-provinces-2020/

[Anonymous No.29396385]

>>29395801
Sounds right

>>29395305
There is a q&a on r/BitcoinCA by an accountant that does nothing but crypto taxes. Yeah its reddit but it's all there.

[Anonymous No.29396418]

>>29393728
Panama has joined the CRS. Which means they can and will give up banking information from anybody who opens a bank in their borders. When you report that you are canadian, they will inform the CRA that you have a Panamanian account.

[Anonymous No.29396517]

>>29394911
problem solved.
now stop being a little whining bitch and man the fuck up

[Anonymous No.29396539]

>>29396385
>>29395305
https://www.reddit.com/r/BitcoinCA/comments/jwmn6h/taxation_2020_incoming_bull_market/?utm_medium=android_app&utm_source=share

[Anonymous No.29396620]

>>29394988
can you tell me about this boat accident meme? i'm an intermittent fag, i.e not newfag

[Anonymous No.29396635]

>>29389551
CRA is too busy chasing down CERB getters, fuck em

[Anonymous No.29396690]

Just don't report then, idiot
Even in Brazil where the government stills everything is 15%
Lmao

[Anonymous No.29396799]

>>29395801
that's basically it
but if you cash out 500k at that point I would hire a CPA and a lawyer

[Anonymous No.29396882]

>>29389119
Wait, income tax in Canada is 50%?

[Anonymous No.29396901]

>>29395778
They will take the difference if you get audited, yes. If they find out after let's say 5 years, it's more of a grey area because you can say that you declared it in good faith. But you would potentially be on the hook for the difference+time penalties.

Just talk to a jew tax lawyer if you can afford it. Will run you about 5-10k

[Anonymous No.29396905]

>>29396620
It's based on an old Seinfeld joke.

[Anonymous No.29396971]

Canada is a shithole lmao

[Anonymous No.29396975]

>>29396882
My bad, meant "capital"

t. pajeet

[Anonymous No.29397044]

>>29395305
Straight from a CPA regarding staking

>The exact price and moment you receive them sets your cost basis.
>Earning staking rewards/interest is NOT a capital gain. It is income. you are taxed on the full value of it, not at 50%.
>If you received $100 worth, you earned $100 and are taxed on $100. If you then sell years later at $10 for the same amount, you would then declare a loss of $90, which $45 would be a capital loss.
>It is not different. You can't just make up your own treatments.

[Anonymous No.29397151]

>>29396975
50% of the gain is taxed at your taxable rate. Anywhere from 15 - 41 %

[Anonymous No.29397199]

>>29397044
I don't care what the CPA says, I want to see the tax code.

[Anonymous No.29397213]

>>29396882
>>29396975
50% of gains are taxable.
>Buy $1000 of BTC at $1
>Sell $2000 of BTC at $2
>Profit is $1000
>Capital gains are 50% of this, so $500
>Pay tax on this $500 by adding it to your income for the year
Most people pay around 25-30% tax rate, so on that $500 @ 25% you would pay $125 in taxes.

[Anonymous No.29397216]

>>29394911
is there an equivalent of coin shack but in Québec?

Any Québec bros? Do you guys know a place to cash out in cash ?

[Anonymous No.29397776]

>>29397216
There is a depanneur in brossard that has a btc atm and also a pajeet. The pajeet told me he does OTC txns. The pajeet is the owner so if you need to do a 10K plus cash txn go see him. Just look up btc atm on google maps and you'll find it.

>>29396244
>>29396385
>>29396799
So what is the alternative to that? Paying only 25% seems relatively fair to me, but the crypto to crypto sounds like it will cost me even more.

[Anonymous No.29398025]

>>29397776
>There is a depanneur in brossard that has a btc atm and also a pajeet. The pajeet told me he does OTC txns. The pajeet is the owner so if you need to do a 10K plus cash txn go see him. Just look up btc atm on google maps and you'll find it.
merci mon chum

>So what is the alternative to that? Paying only 25% seems relatively fair to me
The problem with declaring your gains in general, and the general purpose of this thread is to know if the CRA will put you on their radar and audit you.
I spoke to the director at my RBC branch bank and he said as long as you deposit less than 10k you won't trigger finrac
do with this info as you will

[Anonymous No.29398053]

>>29397776
What I mean is what does business income add to this?

[Anonymous No.29398141]

>>29397776
>the crypto to crypto sounds like it will cost me even more.
That's the part that doesn't make sense. When I file my ForEx trades (leveraged account so no tax protections) I only have to file GROSS transactions. They don't care about the details.
Why should it be any different for Crypto unless there is a SPECIFIC tax code to address it? It falls under the 'currency' spectrum.

[Anonymous No.29398395]

>>29398141
Crypto is considered a commodity not a currency that maybe why your logic doesn’t apply in this case.

[Anonymous No.29398654]

>>29398395
>commodity not a currency
I trade commodities in my ForEx account, too. SAME TREATMENT.
GROSS TRANSACTIONS ONLY.

[Anonymous No.29398976]

>>29397776
>There is a depanneur in brossard that has a btc atm and also a pajeet. The pajeet told me he does OTC txns.

MERCI chummy, si j'viens à make it, la brosse est sur mon bras

[Anonymous No.29398987]

So if I made like $30k on binance but haven't converted to cdn $ yet, and I don't file anything crypto related... Am I fucked?

[Anonymous No.29399072]

GUYS
>send all funds to another address
>If they start sniffing around say your dumbass gave some pajeet your seed phrase
>P2P funnel it through PayPal, Interact, giftcards etc
>CRA is not equipped to deal with an influx of crypto enthusiasts and process their every move
>They're probably up to their tits and mouth-watering over easy-gettin CERBurglaries
>Janice, 47, unmarried, is too busy typing in GST checks in her florescent cube to give a fuck what a Uni-swappereum-cakecoin-liquiditypool is

[Anonymous No.29399318]

>>29397216
if you're in montreal, there's a few bitcoin ATMs around, they take a big chunk tho, not as much as daddy trudeau or mommy legault tho

[Anonymous No.29400408]

>>29398987
Did you submit KYC?

[Anonymous No.29400420]

>>29398141
Yeah as I said in >>29395090 it makes 0 sense. Therefore they can suck my cock and I will always and forever declare an unknown amount of XMR. If it doesn't change then I will move out of here. I have a friend in Belgium currently looking to move to Portugal because he has to pay 50% of his gains and he may also have a total net loss if he reports everything with his 12mm monthly volume on huobi.


>>29398976
>>29398025
Sinon y'a des ATMs normaux partout faites juste chercher bitcoin ATM certains permettent de wuthdraw mais mon pajeet ils fait des txn OTC de plus de 100k.

source: poojeet

[Anonymous No.29401136]

>>29399318
How do BTC ATM's even work ? You send or scan your wallet on your phone? Never tried it.
Do ATM'S hold more than 5k cash ?

[Anonymous No.29401633]

>>29397213
>so on that $500 @ 25% you would pay $125 in taxes.
Oh, so 12,5% then

[Anonymous No.29401857]

>>29400420
>Yeah as I said in >>29395090 it makes 0 sense.
Stoner-checked.
I think what's going on here is the Legislators are just throwing shit at the wall and seeing what sticks, because they can't fit a round peg in a square hole.

[Anonymous No.29402278]

>>29400420
imagine filing your tax returns with uniswap txs/gas fees w/ food tokens, that would be beyond retarded. they'll need to deal with the PCU/CERB people before cracking down on non-normie crypto traders.

ouin, c'est juste que le spread des bitcoin atms est brutal. j'suis content de savoir que certains dépanneurs font du ''au-dessus du comptoir''.

[Anonymous No.29403076]

>>29401857
I think so too. It's still a grey area, but I think that they will come up with more comprehensive laws.

>>29402278
Dans le meilleur des mondes je vais leurs donner mes txns totales, mais je vais pas m'amuser a leur dire combien de patisseries que jai farm entre le 8 et le 12 fevrier 2021 + gas + approval. Anyways perso j'utilise coinbase. Je suis dans le processus de tout convertire a xmr pis d'envoyer ca dans un nouveau wallet. Je vois pas pourquoi ils vouraient s'interresser a mes 50$ anyways.

[Anonymous No.29403281]

>>29392970
That being said they are the most competent government agency. After all they are the ones who bring in the $.

[Anonymous No.29403815]

>>29403076
Utilise coinmetro au lieu de coinbase chum
les fees sont moins gros pi fiat on-ramp off-ramp très simple
le seul point négatif c'est qu'ils ont pas encore CAD support mais ça va venir
jamais eu de trouble utiliser ma carte crédit RBC pour acheter du crypto