Transactions involving cryptoassets can give rise to several tax obligations in Canada. The forms you need to file depend on your taxpayer status, the nature of your activities, and your province of residence. In Quebec, merely holding cryptoassets is sufficient to trigger the requirement to file a Cryptoasset Return.
This article outlines the main tax obligations related to cryptoassets in Canada, including federal requirements and those specific to Quebec. It identifies the forms that may apply to your situation and provides links to detailed guides to help you understand your tax obligations.
Selling, exchanging, or using cryptoassets to pay for goods or services generally constitutes a disposition for income tax purposes. Depending on the facts of each situation, these transactions may give rise to capital gains or losses or business income or losses. This distinction is essential because it determines the applicable tax treatment and the forms to be filed. [1]
Reporting Capital Gains and Losses
When an individual disposes of cryptoassets held on capital account, they must calculate their gains or losses using the proceeds of disposition, adjusted cost base (ACB), and expenses incurred to dispose of the assets. The results are reported on Schedule 3 of the federal income tax return and, for an individual resident in Quebec, on Schedule G. [2] [11]
Our guide to cryptoasset capital gains and losses brings together the calculation rules and tax-form requirements of both tax authorities.
Reporting Business Income and Expenses
When an individual's cryptoasset activities constitute a business, the results are not reported as capital gains or losses. Business revenue and expenses are instead reported using Form T2125 federally and Form TP-80 in Quebec. [1] [3] [12]
The guide to cryptoasset business income explains how this classification affects the reporting process and what information is needed for federal and Quebec returns.
Reporting Income from Property Earned Through Cryptoassets
Certain income earned from cryptoassets may be classified as income from property rather than business income, depending in particular on the taxpayer's level of activity.
For federal income tax purposes, income from property earned through cryptoassets would be reported on line 12100 of an individual's income tax return. [23]
In Quebec, income or losses from property arising from cryptoassets are reported in Part 4.3 of Form TP-21.4.39. The amount reported on line 135 is then carried over to line 130 of the Quebec income tax return (TP-1). [9] [24]
For a Canadian-controlled private corporation (CCPC), income from property earned through cryptoassets is also included in the calculation of aggregate investment income, subject to the applicable rules. This calculation, completed on Schedule 7 of the T2 return, may also include taxable capital gains. It is used, among other things, to determine the refundable portion of federal income tax on investment income. Schedule 7 is also used to calculate adjusted aggregate investment income, which may reduce the business limit available for the small business deduction. [25]
Reporting Cryptoassets Held by a Corporation
A corporation must account for its cryptoasset transactions in its financial statements and, consequently, in its income tax returns. Dispositions of cryptoassets held on capital account are reported on Schedule 6 of the T2 return federally. A corporation required to file in Quebec uses the CO-17 return and reports dispositions of cryptoassets held on capital account on Schedule CO-17S.232 — État de l’aliénation d’immobilisations. Revenu Québec does not provide this schedule; its corporate income tax guide explains the information it must contain. [4] [13] [14]
Our guide to corporate cryptoasset tax reporting brings together the relevant returns and the main distinctions between capital and business treatment.
Reporting Cryptoasset Holdings and Transactions in Quebec
Quebec has a specific cryptoasset reporting requirement under Form TP-21.4.39. It applies, in particular, to individuals and corporations that hold, receive, or dispose of cryptoassets, use them in transactions, or earn mining or staking rewards. Simply holding cryptoassets may be sufficient, even without a sale or profit. [9]
Affected taxpayers must also answer the cryptoasset question on their main income tax return: Box 24 of the TP-1.D return for individuals and Box 19b of the CO-17 return for corporations. Form TP-21.4.39 must be attached when the filing requirement applies. [10] [13]
See our guide to Quebec cryptoasset reporting for the circumstances covered and the information that must be provided.
Reporting Cryptoassets That May Qualify as Foreign Property
Form T1135 is an information return that applies to Canadian-resident individuals and corporations when the total cost amount of specified foreign property exceeds CAD $100,000 at any time during the year, subject to applicable exclusions. [5]
The Canada Revenue Agency (CRA) considers cryptocurrencies to be funds or intangible property and, therefore, potentially subject to the reporting requirements of Form T1135. Whether a particular cryptocurrency holding must be reported depends on where it is situated, deposited, or held. This determination can be complex and requires an assessment of the specific facts and circumstances. [6] [7]
In Quebec, Form TP-1079.8.BE also imposes a reporting requirement on covered taxpayers when the total cost of designated foreign property exceeds CAD $100,000 at any time during the taxation year. This requirement applies to taxation years ending after December 30, 2025. It is also necessary to determine whether the cryptoassets meet the applicable Quebec definition. [15] [16]
Our guide to foreign-property reporting for cryptoassets addresses the federal and Quebec requirements together.
What Sales Tax Rules Apply to Cryptoassets?
GST/HST does not apply in the same way to every cryptoasset transaction. According to the Canada Revenue Agency (CRA), selling a cryptoasset that qualifies as a "virtual payment instrument," as Bitcoin and Ether generally do, is generally an exempt supply of a financial service. By contrast, sales of other tokens may be taxable, depending on their characteristics and the applicable rules. [8]
When a business accepts cryptoassets as payment for taxable goods or services, it must calculate GST/HST using the fair market value of the cryptoassets at the time of the transaction. Special rules apply to mining: GST/HST generally does not have to be collected on mining payments, and related expenses generally do not qualify for input tax credits, subject to certain exceptions. [8]
Depending on their activities, businesses may be required to register, collect tax, and file returns. In Quebec, QST obligations must also be considered. Our guide to sales taxes and cryptoassets explains the relevant treatment and the main reporting obligations. [17] [18]
Carrying Tax Losses Back to an Earlier Year
An eligible tax loss may, in certain circumstances, be carried back to an earlier year. The type of loss and the taxpayer involved determine which rules apply and what income can be offset.
Individuals may use Form T1A federally and Form TP-1012.A in Quebec. For corporations, the relevant forms include Schedule 4 of the T2 return and Form CO-1012. [19] [20] [21] [22]
Our guide to cryptoasset tax loss carrybacks explains the federal and Quebec procedures in one place.
Need Help Determining Your Tax Obligations?
Cryptoasset tax obligations can quickly become complex, particularly when multiple wallets, platforms, or transaction types are involved. Filing requirements depend on the taxpayer and the tax treatment of their activities.
Would you like to confirm which requirements apply to your situation, reconstruct your transaction history, or prepare the calculations needed for your tax filings? The Token Expert team can help.
Contact us to discuss your situation and determine the best way to prepare your cryptoasset tax records.
References
The bracketed numbers throughout this article refer to the sources listed below. Links lead to official sources, except for references 6 and 7, which provide, respectively, a CRA response reproduced by a tax publisher and commentary from the Canadian Tax Foundation.
-
Canada Revenue Agency. Reporting income from cryptoasset transactions.
-
Canada Revenue Agency. Schedule 3 – Capital Gains or Losses.
-
Canada Revenue Agency. T2125 – Statement of Business or Professional Activities.
-
Canada Revenue Agency. T2 – Schedule 6, Summary of Dispositions of Capital Property.
-
Canada Revenue Agency. Questions and answers about Form T1135.
-
Canada Revenue Agency. Document 2023-0984901C6 – Cryptocurrency Guidance. Response to the CPA Canada roundtable held on August 29, 2023. CRA text reproduced by Tax Interpretations.
-
Canadian Tax Foundation. Applying Foreign Property Reporting Requirements to Cryptoassets. Canadian Tax Focus, 2025. Secondary-source commentary.
-
Canada Revenue Agency. Collecting and remitting GST/HST on cryptoasset transactions.
-
Revenu Québec. TP-21.4.39 – Cryptoasset Return.
-
Revenu Québec. TP-1.D-V – Income Tax Return, Box 24. 2025 taxation year. Line 24 instructions – Cryptoassets.
-
Revenu Québec. Schedule G – Capital Gains and Losses. Schedule to the 2025 individual income tax return (PDF).
-
Revenu Québec. TP-80 – Business or Professional Income and Expenses.
-
Revenu Québec. CO-17.G – Guide to the Corporation Income Tax Return (in French).
-
Revenu Québec. CO-17.G, section 6.1.15 — CO-17S.232 (in French).
-
Revenu Québec. TP-1079.8.BE – Foreign Property Return.
-
Revenu Québec. Requirement to Report Foreign Property Held Outside Canada (in French). Tax news release dated November 26, 2025.
-
Revenu Québec. GST/HST and QST.
-
Revenu Québec. Filing GST/HST and QST Returns.
-
Canada Revenue Agency. T1A – Request for Loss Carryback.
-
Canada Revenue Agency. T2 – Schedule 4, Corporation Loss Continuity and Application.
-
Revenu Québec. TP-1012.A – Carry-Back of a Loss.
-
Revenu Québec. CO-1012-T – Application by a Corporation to Carry Back a Loss (courtesy translation). The official CO-1012 must be filed in French.
-
Canada Revenue Agency. Line 12100 – Interest and other investment income.
-
Revenu Québec. Line 130 – Interest and other investment income.
-
Canada Revenue Agency. T2SCH7 – Aggregate Investment Income and Income Eligible for the Small Business Deduction.
Disclaimer
This article is provided for informational purposes only and does not constitute tax, accounting or legal advice. The applicable treatment depends on the facts and the taxpayer's circumstances. Tax rules and filing requirements must be verified for the relevant taxation year.
Last reviewed: October 23, 2026.
