Canada - Complete Tax Report

The KoinX Complete Tax Report for Canada applies CRA rules and calculates your capital gains using the Adjusted Cost Base (ACB) method. It compiles your capital gains, derivatives income, crypto income, transaction records, and asset balances into one document you can share with your accountant or tax professional when filing your T1 tax return.

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What Is in This Report?

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How CRA Taxes Crypto

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The 50% Inclusion Rate

Canada taxes only half of your capital gains. Example:

You buy BTC for CAD 40,000 and later sell it for CAD 60,000.

• Capital Gain: CAD 60,000 − CAD 40,000 = CAD 20,000

In Canada, 50% of capital gains are taxable.

• Taxable Capital Gain:
  CAD 20,000 × 50% = CAD 10,000

If your marginal tax rate is 30%, the tax would be calculated as:

• Tax Owed:
  CAD 10,000 × 30% = CAD 3,000
  
  KoinX reports the full capital gain, which you then use to calculate the taxable portion under CRA rules.

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Crypto-to-Crypto Trades Are Taxable

In Canada, every crypto-to-crypto trade is considered a disposition. Examples: BTC to ETH trade, token swap on a DEX, buying an NFT with crypto. The fair market value at the time of the trade determines the proceeds.

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Adjusted Cost Base (ACB)

Canada requires the Adjusted Cost Base method. Steps: track total cost of all purchases of an asset, track total quantity held, calculate average cost per unit, then use that average cost when selling. Example:

You buy 1 BTC for CAD 30,000, and later buy another 1 BTC for CAD 40,000.

• Total Cost: CAD 30,000 + CAD 40,000 = CAD 70,000
• Total BTC Held: 2 BTC

Under the Adjusted Cost Base (ACB) method used in Canada:

• ACB per BTC: CAD 70,000 ÷ 2 = CAD 35,000

Now, if you sell 1 BTC for CAD 50,000:

• Capital Gain: CAD 50,000 − CAD 35,000 = CAD 15,000
  
  KoinX automatically calculates ACB for each asset.

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Capital Gains Summary

This section summarises all crypto disposals during the tax year. Values are calculated using the Average Cost / ACB method.

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Summary of Income from Crypto Derivatives

If you traded crypto derivatives such as futures or options, this section summarises your realised trading results. Options trading is also summarised in this section.

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Other Income and Expense Summary

This section captures crypto received as income. Examples include:

• Airdrops
• Rewards
• Staking income
• Salary in crypto
• Consultancy income
• Mining income

Expenses may include:

• Margin interest
• Mining expenses
• Donations
• Consultancy expenses

These values are shown in CAD based on market value at the time of receipt.

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Detailed Beginning of Year Asset Balances

The report includes portfolio snapshots showing your crypto holdings at the start and end of the tax year.

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Detailed End of Year Assets Balances

Shows the portfolio position on the last day of the financial year. Why these reports matters:

• Shows your starting position for the year
• Helps verify that cost basis carry-forward is correct
• Useful for audit trail and reconciliation

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Capital Gains Transactions

This section lists every taxable crypto disposal. This provides the audit trail supporting your capital gains summary.

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Crypto Derivatives Transactions

Lists individual futures and options trades.

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Other Income and Expense Transactions

This section lists detailed income events such as:

• Reward income
• Staking interest
• Airdrops
• Salary payments
• Mining income
• Donations
• Expenses

Each entry includes date, asset, quantity, value, and source.

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Asset Wise Profit & Loss

This section summarises profit and loss per cryptocurrency. This helps identify which assets generated gains or losses.

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Data Sources

This section lists all integrations used to generate the report: exchanges, wallet addresses, and custom file imports. This ensures transparency about where the transaction data originated.

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Frequently Asked Questions