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Crypto sales, swaps and purchases made with coin go on Schedule 3, and half of the net gain lands on line 12700. If the CRA sees a business, the full profit is reported instead. A 2026 return is due April 30, 2027, or June 15 for self-employed filers.
Where does a crypto sale go on the return?
A sale, a swap and a purchase paid with coin are all dispositions in the CRA's wording, so each one is worked out on its own. For most people the result is a capital gain or loss. You list the dispositions on Schedule 3, the form for capital gains, and half of the net gain flows to line 12700 of your T1 return. If the CRA would see your activity as a business, the profit goes on the business income form instead and is fully taxable.
The CRA crypto pages say a disposition includes trading a crypto-asset for government currency or for another crypto-asset, using it to buy goods or services, and giving it away. They also say that moving coins between wallets you own is not a taxable disposition. Holding coins you never sold does not go on the return as income.
Every figure must be in Canadian dollars. The CRA's capital gains page says to use the exchange rate on the transaction date, or for many transactions the Bank of Canada rate or an annual average rate. The CRA valuing page adds that the method must be reasonable and used the same way each year.
Capital gain: how do Schedule 3 and line 12700 work?
Schedule 3 turns your dispositions into one number. The CRA's T4037 guide (2025 edition) says to list each disposition in Part 3, add them up in Part 4 and find the taxable capital gain or net capital loss in Part 5. If the result on line 19900 is positive, you enter it on line 12700. If it is negative, it is not entered on line 12700. It becomes a net capital loss you can use in other years.
Each disposition needs three numbers: proceeds, adjusted cost base (ACB) and outlays and expenses. The CRA says a gain is proceeds that exceed the ACB plus the outlays and expenses of selling. Half of the gain is the taxable capital gain. Our page on the crypto adjusted cost base shows how to work out the ACB when you bought the same coin several times.
The 2026 version of Schedule 3 is not published yet, and we have not read its box wording. The line numbers above come from the CRA pages for the 2025 return, so check the form for 2026 before you file. The CRA crypto pages also do not say which section of Schedule 3 a crypto-asset belongs in, so read the T4037 guide for the current year.
What does a worked example look like?
The table below uses four made up dispositions in 2026. The numbers are an example only, computed in a script, and they are not tax advice. Fees are treated as outlays that reduce the proceeds.
| Disposition | Proceeds | Fee | ACB of what you gave up | Gain or loss | Taxable half |
|---|---|---|---|---|---|
| Sale of part of a holding | $22,000 | $100 | $20,040 | $1,860 | $930 |
| Swap of one coin for another | $3,500 | $25 | $2,000 | $1,475 | $737.50 |
| Coin spent on a laptop | $2,400 | $0 | $1,500 | $900 | $450 |
| Coin sold at a loss | $3,800 | $20 | $5,000 | -$1,220 | -$610 (allowable) |
Together the three gains are $4,235, so the taxable part is $2,117.50. The loss gives an allowable capital loss of $610, which offsets the taxable gains. The net taxable capital gain for line 12700 is $2,117.50 minus $610, or $1,507.50. The tax on that depends on your other income and your province. Our capital gains tax calculator adds the figure to your income.
The CRA's own crypto trade example works the same way. Crypto-asset B cost $15,000 and was traded for crypto-asset A worth $20,600, a gain of $5,600 and a taxable capital gain of $2,800. If B had cost $25,000, the result is a loss of $4,400 and an allowable capital loss of $2,200.
Business income: when does the T2125 apply?
The CRA says business income exists when your activities look like those of a business. The factors it lists are how often you trade, how long you hold, your knowledge of the markets, the time you spend on it, debt used to buy and advertising that you buy and sell crypto. One isolated trade can also be business income if it was an adventure or concern in the nature of trade. The decision is made case by case.
If you are in business, you report the full profit or loss, not half. The CRA points to guide T4002 for self-employed income. The usual form there is T2125, the statement of business or professional activities, but the CRA crypto pages do not name the form, so confirm it in the T4002 guide. Business losses can be deducted against other income, which capital losses cannot. That is why the classification matters, and why the CRA looks at it closely.
The CRA crypto page shows a business example: sales of $240,000, opening inventory of $180,000, purchases of $30,000, closing inventory of $12,000 and expenses of $2,000 give a net business income of $40,000. A person who trades crypto as a business may value inventory by one of the methods on the CRA valuing page. Our guide to how the CRA treats crypto compares the two treatments in more detail.
Where does staking, mining or reward income go?
The CRA mining and staking page says rewards from staking on a centralized exchange are generally income under the Income Tax Act when they are credited. It also says mining is generally treated as a business, with the income counted when it is earned. In both cases the value in Canadian dollars at that moment is the income figure.
The page does not say whether staking income is business income or property income, and it does not cover airdrops, forks or DeFi. We have not found a CRA page that settles those, so we do not state a rule. Report what the CRA pages support and ask the CRA or a tax professional about the rest.
When you later sell reward coins, a second event happens. The sale produces a capital gain or loss based on the value you already counted as income. A reward of 10 units credited at $40 each is $400 of income. Selling them at $55 each is $550, a gain of $150. The CRA pages do not spell out this cost rule for rewards, so treat it as the usual reading and keep your records.
What do you attach or keep?
You do not send your transaction history with the return, but you must be able to produce it. The CRA books and records page lists what to keep: the date of each transaction, the type of crypto-asset, the amount and value in Canadian dollars, the other party if known, and your wallet addresses. It also asks for receipts for accounting, legal and software costs, and for your opening and closing balances with the cost of the opening balance.
Keep records for six years after the last tax year they relate to, and export your exchange history on a regular basis. A platform can close or remove old data. The CRA page says the same thing about exports. A simple spreadsheet with one row per disposition is enough to fill in Schedule 3 and to answer questions if the CRA writes to you.
- Date, coin, units and Canadian dollar value of each buy, sale, swap and spend
- Fees paid, with the reason for each
- Your running ACB for each coin
- Exchange statements and wallet addresses
- How you valued each coin, and the same method every year
When is the 2026 return due?
A 2026 return is filed in 2027. Most individuals must file and pay any balance by April 30, 2027. Self-employed people and their spouses or common-law partners have until June 15, 2027 to file, but a balance owing is still due April 30. If you trade as a business, the June date applies to your filing and not to your payment.
Budget 2026 proposes to move the date to May 15, but only from the 2027 tax year, so it does not change the return you file in 2027. It is a proposal until it becomes law. Our article on the May 15 tax filing deadline explains it. The budget annex describes today's rules in the same way.
What mistakes are common with crypto on a return?
- Reporting only sales for cash and leaving out swaps and purchases paid with coin. The CRA says all of them are dispositions.
- Counting a wallet to wallet move as a sale. The CRA says it generally is not one.
- Forgetting fees. Fees on the purchase add to the cost, and fees on the sale reduce the proceeds.
- Using a US dollar or exchange figure instead of Canadian dollars.
- Switching between valuation methods from one year to the next.
- Claiming a business loss against other income when the activity is a capital one.
Our page on whether crypto is taxable covers the basic rules, and the page on NFT sales and trades covers one open area.
What is still unknown?
Some points are not settled on a CRA page we could read. The 2026 Schedule 3 is not out. The CRA crypto pages do not say which Schedule 3 section applies, and they do not cover airdrops, forks or DeFi. Whether the average cost rule for identical shares applies to coins is a question we cover on the ACB page. If any of these affect you, ask the CRA or a qualified professional.
This page is information only. We do not prepare returns, we do not represent the CRA or any organization, we do not guarantee the figures are correct for your case and we are not liable for decisions based on this page.
Frequently asked questions
Where do I report crypto on my tax return in Canada?
Capital gains and losses go on Schedule 3, and the taxable amount goes on line 12700. If the CRA treats your activity as a business, the full profit goes on the business income form instead. Check the 2026 forms before you file.
Do I report crypto if I only held it?
Holding crypto without selling, swapping or spending it is not a disposition, so there is no gain to report for that coin. Moving coins between your own wallets is also generally not a disposition. Keep your records so you can show the cost later.
Is half of my crypto gain taxed?
For a capital gain, yes. The CRA says half of the gain is the taxable capital gain. The annex to Budget 2026 shows no change to the one half rate. If your activity is a business, the whole profit is taxable.
Can I deduct a crypto loss?
A capital loss is only half allowable, and it offsets taxable capital gains, not other income. If losses exceed gains, the excess is a net capital loss. The CRA says it can be carried back three years or forward without limit.
What if I forgot to report crypto in earlier years?
The CRA crypto pages say gains and losses must be reported. We have not read a CRA page on correcting past returns for crypto, so we do not give steps here. Ask the CRA or a qualified professional how to fix an earlier return.
What is the deadline for a 2026 return with crypto?
Most people file and pay by April 30, 2027. Self-employed people can file by June 15, 2027, but any balance is still due April 30. Budget 2026 proposes May 15, but only from the 2027 tax year, and a proposal is not law until Parliament passes it.