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These six examples show crypto gains the way the CRA describes them: a sale, a swap, a purchase paid in coin, a staking reward, a loss carried into 2027 and a business versus capital comparison. Half of a capital gain is taxable. All figures are made up.
Example 1: what does a simple sale look like?
This is the CRA's own style of example. You bought crypto for $3,500 and sold it for $4,000. The gain is $500, and half of it, $250, is the taxable capital gain. The CRA crypto page uses these same figures.
| Step | Amount |
|---|---|
| Proceeds | $4,000 |
| Adjusted cost base | -$3,500 |
| Capital gain | $500 |
| Taxable capital gain (half) | $250 |
Fees would adjust the figures. A fee paid to buy adds to the cost, and a fee paid to sell reduces the proceeds. Our page on the crypto adjusted cost base shows how to build the cost when you bought in several lots.
Example 2: how is a swap of one coin for another worked out?
A trade of one crypto-asset for another is a disposition. You give up coin A, which was worth $3,500 in Canadian dollars at the moment of the trade. It cost you $2,000 and you paid a $25 fee.
| Step | Amount |
|---|---|
| Value of coin A at the trade | $3,500 |
| Fee | -$25 |
| ACB of coin A | -$2,000 |
| Capital gain | $1,475 |
| Taxable capital gain (half) | $737.50 |
The CRA example is a trade of crypto-asset B, which cost $15,000, for crypto-asset A worth $20,600. The gain is $5,600 and the taxable part is $2,800. With a cost of $25,000 it would be a $4,400 loss and a $2,200 allowable loss. The crypto swap page goes deeper.
Example 3: what if you pay for something with coin?
The CRA says using crypto to buy goods or services is a disposition, and treats it as barter. Say you buy a laptop for $2,400 with coin that cost you $1,500. The coin was worth $2,400 at the time, so that is your proceeds.
| Step | Amount |
|---|---|
| Value of the coin spent | $2,400 |
| ACB of that coin | -$1,500 |
| Capital gain | $900 |
| Taxable capital gain (half) | $450 |
Nothing was converted to cash, yet there is still a gain to report. That surprises many people, so keep a record of the date and the Canadian dollar value for every spend.
Example 4: how does a staking reward work when you sell it later?
The CRA says staking rewards on a centralized exchange are generally income when they are credited. Say 10 units are credited at $40 each. That is $400 of income in the year of credit. Later you sell the 10 units at $55 each, for $550.
| Step | Amount |
|---|---|
| Income when credited | $400 |
| Proceeds of the later sale | $550 |
| Cost (value already counted as income) | -$400 |
| Capital gain on the sale | $150 |
| Taxable capital gain (half) | $75 |
The CRA pages do not spell out the cost rule for rewards, so this uses the usual reading: the value counted as income becomes the cost, so the same dollars are not taxed twice. The CRA also does not say whether staking income is business or property income, so we do not give a form for it.
Example 5: how is a 2026 loss used in 2027?
A capital loss only offsets capital gains. The CRA says half of a capital loss is the allowable capital loss, and when allowable losses exceed taxable gains the excess is a net capital loss. Net capital losses can be carried back three years or forward without limit, against taxable capital gains.
Say in 2026 you sold coin at a loss of $9,000 and had no gains that year. The allowable loss is $4,500, and it becomes a net capital loss. In 2027 you have a $6,000 gain, so the taxable capital gain is $3,000.
| Step | Amount |
|---|---|
| 2026 capital loss | $9,000 |
| 2026 allowable loss (half), kept as net capital loss | $4,500 |
| 2027 capital gain | $6,000 |
| 2027 taxable capital gain (half) | $3,000 |
| Net capital loss applied in 2027 | -$3,000 |
| Net capital loss still available | $1,500 |
The CRA pages we read do not say how to order the use of losses from several years, so ask the CRA if you have more than one. Our capital loss page explains the general rules.
Example 6: how can business income change the same profit?
Take a $6,000 profit from crypto in 2026. If the CRA treats it as a capital gain, half is taxable, which is $3,000. If the CRA treats it as business income, all $6,000 is taxable. The CRA says the decision depends on factors such as how often you trade, how long you hold, your knowledge, the time you spend and any borrowing.
| Treatment | Added to income | Tax at an example 30% marginal rate |
|---|---|---|
| Capital gain | $3,000 | $900 |
| Business income | $6,000 | $1,800 |
The 30% rate is an illustration, not your rate. Your marginal rate depends on your income and province. Our capital gains tax calculator works out the tax for a real situation. A business can deduct its expenses and can deduct a loss against other income, which a capital loss cannot do.
How do the six results compare side by side?
The table gathers the results from the examples above. The last column is what goes into the taxable part of income before any loss is applied.
| Example | Gain or income | Added to taxable income |
|---|---|---|
| 1 Simple sale | $500 | $250 |
| 2 Swap | $1,475 | $737.50 |
| 3 Spent on a laptop | $900 | $450 |
| 4 Staking reward (income) | $400 | $400 |
| 4 Sale of the reward | $150 | $75 |
| 5 Loss in 2026 | -$9,000 | $0 (net capital loss of $4,500 kept) |
| 6 Business profit instead of capital gain | $6,000 | $6,000 |
Two patterns show up. First, almost every disposition produces a capital gain or loss, and only half of a gain is taxable. Second, a reward counted as income is taxed in full when it arrives, and any later move in price is a separate capital gain or loss.
How do you build your own version of an example?
Start with a list of every disposition in the year. For each one write the date, the coin, the units, the Canadian dollar value you received or gave up, the fee and the cost of the units. Then run the same steps as in the tables: proceeds, minus fees, minus cost, equals gain or loss. Half of a gain is taxable, and half of a loss is allowable.
Add the taxable gains and subtract the allowable losses from the same year. If the result is positive, it is the taxable capital gain for line 12700. If it is negative, it is a net capital loss for other years. The steps for the form itself are on our page about reporting crypto on a 2026 return.
The hard part is usually the cost. If you bought the same coin several times, the ACB page explains the averaging question and why it is still unconfirmed for crypto. A spreadsheet that shows the date, coin, units, value and fee for each line is enough, and it is also what the CRA books and records page asks you to keep.
How do the examples change in 2027?
Not by much for the arithmetic. The CRA crypto page still says half of a capital gain is taxable, and the annex to Budget 2026 shows no change to that. Budget 2026 proposes a higher T1135 threshold and later penalties for crypto reporting. Those are proposals until they become law, and none of them changes how a gain is calculated.
The site's existing crypto page works a larger case: a $12,000 gain with $80,000 of other income in Ontario, which our calculator puts at $1,779 of tax. See crypto tax in Canada for that case. For the return filed in 2027, see how to report crypto on your 2026 tax return.
These examples use made up numbers and they are information only. We do not give tax advice, we do not represent the CRA or any organization and we do not guarantee the results for your case.
Frequently asked questions
How is a crypto capital gain calculated in Canada?
Proceeds minus the adjusted cost base minus the outlays and expenses of selling gives the gain. Half of the gain is the taxable capital gain. All amounts are in Canadian dollars, and each coin has its own cost base, which you track separately.
Is a crypto swap taxable?
Yes. The CRA says trading one crypto-asset for another is a disposition. You find the value of what you gave up in Canadian dollars, subtract its cost and fees, and report the gain or loss. Half of a gain is taxable.
Do I pay tax when I spend crypto on goods?
You can. The CRA treats paying with crypto as barter, which is a disposition. If the coin was worth more than it cost, the difference is a capital gain, and half of it is taxable. If it was worth less, you have a capital loss.
Can a crypto loss reduce my salary income?
No. A capital loss only offsets capital gains. Half of it is the allowable amount, and any excess is a net capital loss that the CRA says can be carried back three years or forward without limit against taxable capital gains.
Why does it matter whether crypto is a business?
Business income is fully taxable, and expenses and losses are handled under business rules. Capital gains are only half taxable, and capital losses only offset capital gains. The CRA decides case by case using factors such as how often you trade.
Is the one half inclusion rate changing in 2027?
The CRA crypto page says half, and the annex to Budget 2026 shows no change to the rate. Check the CRA pages again when you file, because Budget measures stay proposals until Parliament passes them into law and they take effect.