[kwlug-disc] Accepting bitcoin (and other cryptos) as a Canadian business

[Remi Gauvin]

On 17-10-19 04:37 PM, Andrew Stevanus (KWLUG) wrote:
> The recent mention of the Humble Cryptocurrency Bundle and the ensuing
> discussion reminded me of something that I've been wondering about for a
> while. How would one go about accepting bitcoin and other
> cryptocurrencies as a Canadian business? Obviously, you'd still have to
> pay income tax, so would you calculate the equivalent amount in CAD when
> you received a payment and just use that? What exchange would you get
> the price from? Does it matter? Do you use the price when the invoice is
> generated, when the customer sends the payment, or when it is actually
> confirmed on the blockchain? Are there any additional rules that would
> apply when accepting cryptocurrency versus CAD?
>

Not a tax accountant by any means, but if you'll allow to play one for a 
bit.

I don't really think it matters a great deal how you convert value at 
the time you receive the coins, (so long as it's consistent and 
reasonable.  Basically, it would be the same as barter.).  However, that 
value would then further be converted to gain/loss when you dispose of 
said coins.

ie.  If I traded $100 worth of my service for 1 BTC, then 2 months 
later, traded that 1 BTC for $150 cash (or equivalent goods/service), my 
total taxable income would be $150.



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