Yeah, that ‘just declare what goes into fiat’ route is what my tax guy recommended a few years ago and I’ve been doing since...
However, the CRA (Canadian Revenue Agency) is now stating on their site that even crypto-to-crypto transactions are a taxable event - and it’s not totally clear whether that pertains to traders only or how strict they are with that...
For people regularly trading, that’s an obvious as it’s a source of income. Though otherwise, I dunno how they can demand taxes be paid in fiat when nothing has been converted to fiat...
Been extra anxious lately just in case they’re getting more strict and unreasonable, in anticipation of / preparation for when pulling out larger amounts in the future to buy property, as it’s likely to hit their radar if having to put more than $10k into a bank...
The bill and penalties could be pretty steep if they were crazy strict on the “crypto-to-crypto swap is taxable” thing. Using the tax pro has been an insurance policy of sorts in case of such an event, but I don’t wanna leave myself open to any unnecessary risks, so being extra diligent to do all the in-crypto accounting best I can just in case.
It’s been a huge stress and headache. But actually kinda sadistically fun, once I found a groove. Quite the puzzle.
Gonna consult again with the tax guy though and get a clear update, hoping to get the green light that still good to continue old strategy though...