Sell Bitcoin in Canada

Selling Bitcoin in Canada is mostly a CRA exercise: the mechanics are routine, the reporting is the work.

Mechanics. Send BTC to a regulated platform, complete KYC, agree on the sell rate in Canadian dollars, choose a payout. Interac e-Transfer is the default Canadian rail for sells under the $25,000 daily Interac limit: settles within minutes, low fees. EFT (Electronic Funds Transfer) handles larger amounts and settles in 1 to 3 business days. Card payouts are available with lower caps.

CRA tax treatment is the key part. Canadian Revenue Agency treats Bitcoin as a commodity. Selling BTC generates either a capital gain (if held as an investment) or business income (if you trade frequently or in commercial size). Most retail holders fall under capital gains: 50% of the gain is included in taxable income at your marginal rate. From mid-2024 the inclusion rate increased to 66.67% on capital gains over $250,000 in a year for individuals, although the change has been under political review and the rules are worth checking before any large disposal.

Adjusted Cost Base (ACB) is the Canadian cost basis method: a single pooled average across all your BTC, recalculated each acquisition. FIFO and LIFO are not options. CRA expects you to keep records of every purchase and disposal in CAD. Tools like Koinly, CoinTracker, and Cointelli compute ACB and produce CRA-formatted reports.

T1135 reporting: foreign-held crypto is specified foreign property if total cost exceeds $100,000 CAD. Most exchanges that hold crypto on your behalf abroad fall in this category. Even if no tax is owed, the form has to be filed.

Crypto prices are volatile. CRA inclusion rates can change. This is not financial advice.