Financial
Can I write off Cryptocurrency Losses in Canada?
YES (CAPITAL LOSS)
Explanation
Cryptocurrency is treated as a commodity by the CRA. Losses from selling crypto at a loss are typically capital losses and can only offset capital gains (not regular income). If you trade crypto as a business, losses may be fully deductible as business losses.
💡 Pro Tip
Keep detailed records of every transaction: date, amount, cost basis, and proceeds. Consider using crypto tax software to track your adjusted cost base across exchanges.