Reporting sales of crypto that was received for freelance payment

[Goltax]

Hello!

I did some side hustle last year and received crypto in payment, which i proceeded to sell in multiple transactions (through Wealthsimple, so i got those records). Now, I did not ask for any kind of documentation regarding the work I did, nor did I produce any kind of receipts about them neither.

So, how should I report this? Should I just enter the transaction lines as Capital Gain/Losses? Should I report that through the Self-Employment Business section, should I do both...?

The total amount in CAD that I received for the crypto was around 18K

 

Thanks!

[Goltax]

Hi again!

Sorry if this is a bother, just wondering if someone might know something about this or not

[Geo123]

Hello Goltax,

Report the crypto currency payment at the FX rate, you already booked (as stated above), as revenue in your, for example,

>>T2125 Income Statement (in $CAD)

IF you incurred capital gains / losses on the actual crypto currency FX changes you incurred, if you kept the crypto currency : 

>>Capital gains and ABIL

  >>Virtual currency transactions

[ParkerHarrison]

Hey there! Reporting crypto earnings can be a bit tricky, but here's a general suggestion. Since you received crypto as payment for your side hustle, it's likely considered self-employment income. You can report it as such, including the total amount in CAD. As for the capital gains/losses, that would typically apply when you sell or exchange crypto. By the way, Quantum AI provides valuable insights on crypto trading if you're interested in maximizing your gains.

[GeanVertigo]

Since you sold the crypto, it's considered a capital gain/loss. You'll need to report each transaction individually using the records from Wealthsimple. Make sure to calculate the gains/losses for each transaction and report them accurately.
As for your work, if it wasn't formal employment, you don't need to report it under the self-employment section. The capital gains reporting already covers the earnings from your side hustle.
If you need further assistance, consider consulting a tax expert to ensure everything's in order. By the way, have you checked a white label crypto exchange? It might be useful for your future crypto endeavors.