Specialized cryptocurrency tax and accounting services for investors, traders, and blockchain businesses throughout Canada. From capital gains calculations to CRA audit defense, we ensure complete compliance with Canadian crypto tax regulations.
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Why Traditional Accountants Struggle with Crypto Tax (And Why We Don't)
Most accountants avoid cryptocurrency because they don't understand blockchain technology, DeFi protocols, or how to properly calculate adjusted cost base across multiple exchanges. Forbes Andersen specializes exclusively in crypto tax and accounting—it's not a side service, it's our core expertise.
Our team combines deep technical knowledge of blockchain transactions with comprehensive understanding of CRA regulations and Canadian tax law. We don't just file your taxes; we become your strategic partners in managing crypto wealth. From initial consultation through CRA audit defense, we provide hands-on guidance that protects your assets and optimizes your tax position. When you work with Forbes Andersen, you gain a dedicated team that speaks both cryptocurrency and accounting fluently.
Whether you're an individual investor managing a Wealthsimple portfolio or a blockchain startup preparing for an IPO, Forbes Andersen LLP delivers customized cryptocurrency tax and accounting solutions.
We've refined our cryptocurrency tax process to be thorough, efficient, and stress-free. Here's what to expect when you work with Forbes Andersen:
Common questions from Toronto crypto investors and businesses:
How much is crypto tax in Canada?
Cryptocurrency is taxed as either capital gains (50% inclusion rate) or business income (100% taxable) depending on your activity level. For most investors, 50% of your profit is added to your taxable income and taxed at your marginal rate. This means effective crypto tax rates range from 10% to 27% depending on your province and income bracket. Active traders may face higher rates if the CRA deems your activity as business income.
Do I need to report crypto if I didn't sell?
Simply holding cryptocurrency (HODLing) isn't taxable in Canada. However, you must report: crypto-to-crypto trades, receiving staking rewards or mining income, airdrops, and using crypto to purchase goods or services. The CRA considers these taxable events even if you never converted to Canadian dollars.
How does the CRA audit crypto transactions?
The CRA receives data from Canadian exchanges and can trace blockchain transactions. During audits, they request detailed records of all purchases, sales, transfers, and wallet addresses. Having professional documentation and proper ACB calculations is essential—penalties for non-compliance can reach 50% of unpaid taxes plus interest.
Can I deduct crypto losses on my taxes?
Yes. Capital losses from cryptocurrency sales can offset capital gains from any source (stocks, real estate, crypto). If your losses exceed your gains, you can carry them back three years or forward indefinitely. Strategic loss harvesting can significantly reduce your overall tax burden.
How do you handle Wealthsimple crypto tax documents?
Wealthsimple provides annual tax statements, but they may not include complete ACB calculations if you've transferred crypto between platforms. We import your Wealthsimple data, verify all transactions, and integrate it with your other exchange activity to ensure accurate reporting across your entire portfolio.
What's the difference between your service and crypto tax software?
Software like CoinTracker or Koinly can handle basic calculations, but they struggle with complex scenarios: DeFi protocols, NFT valuations, mining deductions, or cross-border reporting. Our CPAs review every calculation, apply professional judgment to ambiguous transactions, and provide audit defense if the CRA questions your return. Software can't represent you during an audit.
Do you provide services outside Toronto?
Yes. While our office is in Toronto, we serve cryptocurrency investors and blockchain businesses throughout Ontario, Canada, and internationally. Most of our work is conducted virtually, and we're experienced with cross-border crypto tax issues including US/Canada dual residents and international exchange reporting.
Stop worrying about CRA audits and crypto tax mistakes. Forbes Andersen's specialized team handles everything from basic capital gains to complex DeFi transactions. Schedule your free consultation today and discover how we can protect your investments and optimize your tax position.
With over [X years] of specialized experience in cryptocurrency taxation, UHY Forbes Andersen provides comprehensive crypto tax and accounting services backed by deep expertise in Canadian tax law, CRA regulations, and blockchain technology. As a member of the UHY international network, we offer solutions that navigate both domestic and cross-border compliance requirements. Our hands-on approach guarantees accuracy and audit-readiness, whether you're an individual investor managing a Wealthsimple portfolio, an active trader across multiple exchanges, or a blockchain company preparing for public markets.
