reporting income of mining Bitcoin

[YBY]

hi, 

I have 2 questions when I wanted to report the income of the mining Bitcoins:

1. Can I claim partial of my rent as expenses? If yes, where do I put it?

2. I cashed some of the funds in 2023 and the rest in the year of 2024, but the expenses were all in the year of 2023? How can I report this income and expense?

Thanks  a lot

 

Billie

[Geo123]

Hello YBY,

Please consult with a tax advisor or contact the CRA :

1-800-959-8281 for inquiries related to individuals.
Telephone numbers – Canada Revenue Agency / CRA wait times:
https://www.canada.ca/en/revenue-agency/corporate/contact-information/telephone-numbers.html

IF in Quebec you must also answer the Revenu Quebec question :

You can also refer to below :

What is cryptocurrency mining?

Mining is a process that uses computers or specialized hardware to confirm cryptocurrency transactions. A miner will group valid transactions into blocks and if these blocks are accepted by the corresponding cryptocurrency’s network, they become part of a public ledger on the blockchain.

At this point, the miner usually receives two types of payments in cryptocurrency. The first is income for the creation of a new cryptocurrency, and the second is a payment for the successful validation by the miner. Those who perform the mining processes are paid in the cryptocurrency that they are validating.

Mining may have tax implications. The income tax treatment for cryptocurrency miners is different depending on whether your mining activities are a personal activity (a hobby) or a business activity. This is decided on a case-by-case basis.
Cryptocurrency mining as a business

Business activities normally involve some regularity or a repetitive process over time. In some cases, one transaction can be considered a business activity.

If you are still setting up or preparing to go into business, such as in cryptocurrency mining, you might not be considered to have started a business. You usually have to undertake significant activity that is part of your income-earning process. However, if you are mining as a business, you have to pay tax on your business income from the mining of the cryptocurrency and any capital gains on the sale of the cryptocurrency that you validated.

https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/mining-cryptocurrency.html