To claim a crypto loss on your Canadian tax return, report the sale on Schedule 3 as a capital loss, and use half of it (the allowable capital loss) to offset taxable capital gains. You cannot deduct it against employment income. If you have no gains this year, the loss becomes a net capital loss that you can carry back three years or forward indefinitely, and you request a carryback with form T1A.
That is the capital route. If the CRA treats you as a trader carrying on a business, the full loss counts as business income loss instead, reported on form T2125.
- Capital loss: half is allowable, deductible only against taxable capital gains
- Carryback: three prior years, using form T1A, or forward with no time limit
- Watch out for: the superficial loss rule if you buy the same coin back within 30 days
| Question | Answer |
|---|---|
| Where do I report it? | Schedule 3, in the section for bonds, debentures, promissory notes, crypto-assets and other similar properties. Proceeds go on line 15200 and the total gain or loss on line 15301, in Canadian dollars |
| How much can I deduct? | Half of the capital loss (the allowable capital loss), and only against taxable capital gains |
| Can I deduct it from my salary? | No. The CRA says you cannot deduct allowable capital losses against income from other sources such as employment income |
| Can I use it in another year? | Yes. Carry a net capital loss back three years or forward indefinitely |
| How do I carry it back? | File Form T1A, Request for Loss Carryback, instead of amending old returns |
| Is trading one coin for another a sale? | Yes. It is a disposition at the fair market value in Canadian dollars at that moment |
| What if I trade for a living? | The facts decide. The CRA looks at frequency, holding period, knowledge, time spent, financing and advertising. If it is business, the full profit or loss is included in income |
| How long do I keep records? | Six years from the end of the last tax year they relate to |
How Do You Claim Crypto Losses On Your Taxes In Canada?
- List every disposition for the year. Selling for Canadian dollars, swapping one coin for another and spending crypto all count. Moving coins between your own wallets does not.
- Work out the adjusted cost base of each coin. The CRA defines it as usually the cost of the crypto-asset plus the expenses to acquire it. Expenses to make the sale also go into the calculation.
- Calculate each gain or loss in Canadian dollars. Proceeds minus adjusted cost base minus selling costs. Use a fair market value method that you apply consistently each year.
- Total them on Schedule 3. Gains and losses are netted together. If the result is a net loss, there is no tax to offset this year.
- Apply the loss. Half of a net capital loss is the allowable amount. Use it against taxable gains this year, or carry it back to the three previous years with a T1A.
- Keep your records. Exchange exports, wallet addresses, dates and CAD values. The CRA can ask for them for six years.
What Does A Crypto Loss Look Like In Real Numbers?
An example, with made-up figures, shows how the half rule works. Suppose you sold Ether for $4,000 that cost you $10,000. Your capital loss is $6,000, and the allowable capital loss is $3,000. In the same year you also sold Bitcoin for a $8,000 gain, which makes the taxable capital gain $4,000. You subtract the $3,000 allowable loss, leaving $1,000 of taxable capital gain. If you had no gain that year, the $3,000 would be a net capital loss, available for the three prior years or any future year.
| Line | Amount |
|---|---|
| Ether sold for | $4,000 |
| Adjusted cost base of that Ether | $10,000 |
| Capital loss | $6,000 |
| Allowable capital loss (half) | $3,000 |
| Bitcoin capital gain in the same year | $8,000 |
| Taxable capital gain (half) | $4,000 |
| Taxable capital gain after the loss | $1,000 |
What Is The Superficial Loss Rule For Crypto?
The CRA says that if you sell property at a loss and you, or a person affiliated with you, buy identical property within 30 days before or after the sale, you cannot deduct the loss. The denied amount is usually added to the cost base of the replacement. The CRA treats each crypto-asset as a separate asset, and I treat buying back the same coin during that window as identical property. So if you want to realise a loss on Ether, do not buy Ether again for 30 days before and after. Buying a different coin is a different question, so ask your accountant.
Can I Claim Crypto Lost To A Scam Or A Hack?
Possibly as a capital loss. Under CRA's income tax folio on losses from crime, where a capital property is stolen and you get no compensation, a disposition is considered to have occurred on the date you discovered the loss. Any money you later recover counts as proceeds of disposition. You will need documentation: transaction records, police and fraud reports, and anything showing the date you found out. This is where a tax professional earns their fee. My guide on crypto scam recovery in Canada covers the reporting side.
When Are Crypto Losses Business Losses Instead?
When the CRA treats your activity as carrying on a business. The factors it lists are how often you trade, how long you hold, your knowledge of the market, the time you spend, whether you borrow to trade and whether you advertise a willingness to buy. A business loss counts in full and can offset other income, which is more valuable than a capital loss, but it also means gains are fully taxable. I do not pick a side for you. The pattern matters, and a person with a handful of long-term trades is in a different position from a daily trader. Mining and staking income have their own rules, covered in my staking and taxes guide.
What Tools Help With Crypto Loss Reporting?
Manual spreadsheets work for ten trades and fail for a thousand. The CRA does not endorse products, but it does say third-party software records can be part of your books. I have reviewed Koinly and CoinLedger, and my free crypto tax calculator gives a first estimate. The broader walk-through is in how to report your crypto taxes in Canada and the crypto taxation guide.
What Changed For Crypto Tax Reporting In October 2026?
- The federal government cancelled the proposed increase to the capital gains inclusion rate, so half of a capital gain stays included in income.
- The CRA's page on reporting income from crypto-asset transactions carries this date and states that half of capital gains are included in income.
- Canadian crypto platforms began collecting customer data for CARF reporting, with first reports to the CRA in 2027 for 2026 activity, according to CPA Canada.
Frequently Asked Questions
Can You Claim Crypto Losses On Your Taxes In Canada?
Yes. Report them on Schedule 3. Half of a capital loss is allowable and you can use it only against taxable capital gains, this year, in the three prior years or in any future year.
Can I Deduct Crypto Losses From My Salary?
No. The CRA says allowable capital losses cannot be deducted against employment income or other non-gain income.
How Do I Carry Back A Crypto Loss?
File Form T1A, Request for Loss Carryback, to apply a net capital loss to any of the three previous years, rather than amending those returns.
Is Swapping One Crypto For Another A Taxable Event?
Yes. It is a disposition at the fair market value in Canadian dollars on the day, so it can create a gain or a loss.
What Is The Superficial Loss Rule?
If you buy identical property within 30 days before or after you sell at a loss, you cannot deduct that loss at that time. The CRA adds it to the cost of the replacement.
Can I Claim Stolen Crypto As A Loss?
Possibly as a capital loss, with the disposition dated when you discovered the theft and any recovery counting as proceeds. Keep every record and ask a tax professional.
Oleg,
I am new to Bitcoins however I now have $110375.97USD. +1.940143 BTC. Trust Wallet and Eth I want to withdraw some of that and I don’t know how to, Could you help me out. I just got a message to withdraw within 24 hours!! Thank you so much. I remain,
Email: gardening2u@gmail.com
Phone” 613-220-3458
I would suppose it’s scam email. You don’t get such requests usually, watch out.
I dont know how to sell my bitcoin
Pl video call me how to sell coinbase
Hi Oleg, I have a Cryptocurrency account I want to withdraw money from into my Canadian TFSA Bank Account. What amount would you suggest is best to not raise a red flag with my bank? Please reply to: vernacularlady@gmail.com