TORONTO — It may seem early to start thinking about filing taxes, but this year’s return could be particularly time-consuming for Canadians who have flocked to Bitcoin and other cryptocurrencies, especially those who don’t realize they owe the government money.
No need to worry if you’ve purchased Bitcoin but haven’t touched it since. But once that cryptocurrency is translated into a real-world dollar amount — such as when you sell it or use it to buy something — you are on the so-called tax man’s radar.
The price of Bitcoin shot above US$19,000 in mid-December, prompting a surge of interest, along with some cautionary advice from officials. Bank of Canada governor Stephen Poloz warned about cryptocurrencies’ risks and tax implications the same month.