Speculators Get Relief from Crypto Losses

2022 was not a good year for investors. Stocks and bonds tumbled, and bitcoin crumbled. The S&P/TSX composite index was down 8.7%; the S&P 500 lost 19.4%; NASDAQ composite lost 33.1%; the Dow Jones Industrial Average lost 8.8%. Bitcoin, the world’s largest digital coin fell more than 60%. However, the good news is that Canada will share some investor losses. Since disputes with the Canada Revenue Agency have a prolonged life, investors should save their transactional documents, transactional evidence, and be patient.

The gurus are predicting that markets will increase or decrease in 2023. They are right. However, the immediate question for investors is how to report crypto related losses in April for tax purposes. The answer depends upon their intention when they acquired their crypto assets, the origin of their funds, and how they declared previous gains or losses. In the right circumstances, Canada will relieve the pain of investors  and share some of their losses.

Click here to continue reading.