How to use it
- Read each factor CRA lists and tick the ones that describe your activity.
- Enter a profit amount and your marginal tax rate.
- Compare the estimated tax under each treatment.
- If several factors apply, consider professional advice before filing.
The factors CRA lists
CRA's page on reporting income from crypto-asset transactions (modified December 2, 2025) says gains and losses are either business income or capital, determined case by case. It lists factors that can indicate business activity: how often you trade, how long you hold, your knowledge of crypto-asset markets, the time you spend studying them, whether you finance purchases with debt, and whether you advertise that you buy crypto.
Even a single transaction can be business income if it is an “adventure or concern in the nature of trade”, for example buying with the intention of flipping quickly. No single factor decides; CRA looks at the whole pattern.
| Factor | Leans capital | Leans business |
|---|---|---|
| Frequency | Occasional purchases | Many trades a week |
| Holding period | Months to years | Minutes to days |
| Knowledge | General interest | Specialised, professional-level |
| Time spent | Occasional reading | Substantial daily research |
| Financing | Own savings | Borrowed money |
| Advertising | None | Advertises buying or selling |
What the classification changes
As a capital gain, one-half of the gain is included in income; that is the inclusion rate in force, after the proposed increase was cancelled on March 21, 2025. As business income, the full profit is included. With the defaults (illustrative: a $20,000 profit at a 35% marginal rate), that is about $3,500 of tax versus $7,000.
Losses flip the comparison. Allowable capital losses can only offset taxable capital gains (with carry-back of three years and carry-forward indefinitely), while business losses can generally offset other income. Business income may also bring Canada Pension Plan contributions on self-employment earnings. The calculator leaves those out to keep the comparison clear.
DeFi activity and the business question
High-frequency DeFi activity, such as constant rebalancing of liquidity positions, automated strategies, or leverage loops financed with borrowing, can look more like a business than buy-and-hold investing. CRA hasn't published DeFi-specific guidance, so the general factors are all there is to go on.
Whichever treatment applies, you still need an accurate cost base for each disposition. The ACB tracker works for both.
If you've reported the wrong way
CRA's Voluntary Disclosures Program offers relief on a case-by-case basis to taxpayers who come forward to correct errors or omissions before CRA contacts them. Its overview page was last modified on June 15, 2026. A professional can help you decide whether a disclosure or a simple adjustment is appropriate.