Where did Bitcoin and Cryptocurrency come from? Learn about the history of Bitcoin and its growing popularity here!
The Mogo Blog
Dear Canadians, Our very first open letter, and it’s about Bitcoin. You can scroll to the bottom for some exciting news if you’re crunched for time. We’ve had a lot of fun this year on the blog, doing everything from lightly bullying Isaac Newton to learning about Bitcoin through a truly bizarre love story (IYKYK, it’s fine). Today we want to discuss something more serious with you, so please bear with us. It’s very important to our team—from the executive level, to legal, to our dev team and everyone in between—that we are creating a product, and knowledge, that is helping Canadians in a very specific way. We want you to build wealth. We want you to build wealth for the simple reason that when money isn’t a concern—or, better yet, when you’ve got cash to spare—you can live your best life. We’re not advocating frivolous riches. We’re advocating for a narrowing of the wealth gap; we’re advocating for comfort and security for all Canadians. (Though, more of us have millionaire potential than you’d think, and we think you can probably get there too… But
We love bitcoin! We hate doing taxes! They’re confusing! And yet! We have to! Dumb! That’s it, that’s the lede. We’re getting right into it because the Mogo blog is a *~ zero-pretension-zone~*. Today’s sad tax lesson: crypto taxes. #UGH If you make money on selling, giving, or transferring crypto (this includes just buying and selling!), you’re gonna have to tell the CRA. Stick with us and we’ll unpack a few of the funny rules around cryptocurrency taxation. Is Cryptocurrency Taxable? Generally, yep! Crypto earnings are taxed, though they are handled differently than normal income. In short, any “gains” you make from owning (or “possessing,” as the CRA calls it) crypto are taxable, but not all gains are treated the same way in the course of taxation. Generally, gains are treated as business income, or as a capital gain (again, distinct from your normal income from your job or whatevs). A capital gain is income earned on the sale of an asset which has increased in value since you first purchased that asset. Bitcoin is itself an excellent example here: if you own BTC, the price goes up, and you sell, the money you