# Canada Tax - write off expenses to reduce the business income tax?

**URL:** <https://discuss.koinly.io/t/canada-tax-write-off-expenses-to-reduce-the-business-income-tax/2354>\
**Category:** Tax Questions\
**Created:** [March 4, 2021, 2:05pm UTC](https://discuss.koinly.io/t/canada-tax-write-off-expenses-to-reduce-the-business-income-tax/2354 "2021-03-04T14:05:25Z")\
**Posts on this page:** 3\
**Page:** 1

<div class="post-metadata">

**Author:** ![Philip](https://avatars.discourse-cdn.com/v4/letter/p/96bed5/32.png) [@Philip](https://discuss.koinly.io/u/Philip)\
**Post date:** [March 4, 2021, 2:05pm UTC](https://discuss.koinly.io/t/canada-tax-write-off-expenses-to-reduce-the-business-income-tax/2354/1 "2021-03-04T14:05:26Z")

</div>

I have been into crypto since May 2020. Now that almost all my savings(over 200K CAD) have become crypto(over 800K CAD worth now) and I don’t have a job anymore. Last year, as a crypto newbie I had more than 20 cryptos, which caused over 1000 transactions(I checked using Koinly and shocked). Although I haven’t realized the gain to CAD yet, I assumed that I should think of myself as a trader, right? Does this mean the profit supposed to be a business income, not a capital gain?

If it is not a capital gain, can I write off expenses(such as house rent, electricity, buying PC) to reduce the business income tax?

Thanks.

---

<div class="post-metadata">

**Author:** ![ConorIA](https://yyz2.discourse-cdn.com/flex052/user_avatar/discuss.koinly.io/conoria/32/168_2.png) [@ConorIA](https://discuss.koinly.io/u/ConorIA)\
**Post date:** [March 4, 2021, 11:12pm UTC](https://discuss.koinly.io/t/canada-tax-write-off-expenses-to-reduce-the-business-income-tax/2354/2 "2021-03-04T23:12:36Z")

</div>

Not an expert, but from what I can ascertain - yes you are likely to be considered a business it you were day-trading or trading on margin or depend on trading for your day-to-day. With those gains, the CRA would probably call it an adventure in trade at least. Honestly though, take a couple hundred in profits and get expert help. I think there is a West Coast firm called metrics that are Canadian crypto tax experts. I love Koinly, but I have seen quite a few posts on the tax questions section go unanswered and they’re currently slammed for support.

---

<div class="post-metadata">

**Author:** ![system](https://canada1.discourse-cdn.com/flex052/uploads/koinly_app/original/1X/7ac58e5593a7122893d066794a7254dcdb5ddb31.png) [@system](https://discuss.koinly.io/u/system)\
**Post date:** [May 3, 2021, 11:13pm UTC](https://discuss.koinly.io/t/canada-tax-write-off-expenses-to-reduce-the-business-income-tax/2354/3 "2021-05-03T23:13:06Z")

</div>

This topic was automatically closed 60 days after the last reply. New replies are no longer allowed.