Reporting cryptocurrency on a T1 return

Income from trading in cryptocurrency can either be reported as a capital disposition or as business income. See the CRA's guide for cryptocurrency users for more information about how you should report.

Report as a capital disposition

Cryptocurrency income can now be entered on the S3Details worksheet. The Transaction type dropdown now has an option Virtual currency transactions (cryptocurrency, tokens, etc.).

Once the virtual currency transaction is entered on S3Details, it will appear on the Schedule 3 under property type 3, Publicly traded shares, mutual fund units, deferral of eligible small business corporation shares, and other shares.

Income will be reported on line 12700 for a taxable capital gain. A capital loss will appear on the worksheet LossNetCap on line E for Current year loss in the column for losses after 2000.