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

[Chamunks]

So @Bob you're saying it's better to just cash out the 13% out of BTC and
bank that for tax day?

On Thu, Oct 19, 2017 at 9:54 PM Bob Jonkman <bjonkman at sobac.com> wrote:

> -----BEGIN PGP SIGNED MESSAGE-----
> Hash: SHA1
>
> Remi Gauvin wrote:
> > Not a tax accountant by any means
>
> Me neither.
>
> > 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
>
> This needs a tax accountant.  When I generate an invoice for services
> rendered I charge HST (13%) at the time of invoicing.  So if I perform
> a service for 1 BTC then I would charge 1 BTC + .13 BTC HST = 1.13
> BTC.  CRA gets whatever that .13 BTC is worth at the time the services
> are billed. The .13 BTC are not mine, and I can't spend it or invest it.
>
> If two months down the road my 1 BTC has increased in value 1.5x then
> that's a capital gains, just like any other investment. The .5 BTC
> would be taxed at whatever the capital gains is.
>
> - --Bob.
>
>
>
> On 2017-10-19 05:58 PM, Remi Gauvin wrote:
> > 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.
> >
> >
> >
> >
> >
> > _______________________________________________ kwlug-disc mailing
> > list kwlug-disc at kwlug.org
> > http://kwlug.org/mailman/listinfo/kwlug-disc_kwlug.org
> >
>
> - --
> Bob Jonkman <bjonkman at sobac.com>          Phone: +1-519-635-9413
> <(519)%20635-9413>
> SOBAC Microcomputer Services             http://sobac.com/sobac/
> Software   ---   Office & Business Automation   ---   Consulting
> GnuPG Fngrprnt:04F7 742B 8F54 C40A E115 26C2 B912 89B0 D2CC E5EA
>
> -----BEGIN PGP SIGNATURE-----
> Version: GnuPG v2
> Comment: Ensure confidentiality, authenticity, non-repudiability
>
> iEYEARECAAYFAlnpVuAACgkQuRKJsNLM5eq3WQCfToM4QxOhxFBVdc8oJQaFetcL
> RFQAnjojaKEWdcTrsAK5RfhLcv2DUenQ
> =cRrC
> -----END PGP SIGNATURE-----
>
> _______________________________________________
> kwlug-disc mailing list
> kwlug-disc at kwlug.org
> http://kwlug.org/mailman/listinfo/kwlug-disc_kwlug.org
>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://kwlug.org/pipermail/kwlug-disc_kwlug.org/attachments/20171020/8a39e33e/attachment.htm>