Crypto Mining Taxes in Canada: Records and Questions for Your Accountant

Start with your actual activities

The CRA says mining is generally a business given the scale and resources involved, and business mining receipts must be included in business income when earned. The treatment of your own activities requires a factual review; owning one machine does not automatically make it a hobby.

Keep an organized operating record

Prepare pool exports, payout dates and amounts, wallet records, transaction references and the CAD valuation method used. Retain records of later sales, exchanges and payments separately. Ask your accountant how to reconcile rewards, balances and dispositions instead of assuming every later disposal is a capital gain.

Separate equipment from ongoing expenses

Group equipment invoices, shipping, installation, electricity, cooling, hosting, repairs and pool fees. Identify mixed personal and business use. Ask which costs are current expenses and which belong to the capital cost of an asset. An invoice does not by itself establish a deduction.

Confirm depreciation for the exact purchase

Ask your accountant to confirm the applicable asset class, acquisition and available-for-use dates, depreciation calculation and any incentive conditions. Do not budget around a universal first-year deduction or assume every ASIC receives identical treatment. The CRA's capital cost allowance guidance is linked below.

Review GST/HST and provincial obligations separately

Income tax and sales taxes are different questions. Mining has specific GST/HST rules; do not infer registration or input tax credit eligibility from a generic revenue threshold. Have a qualified professional review your activity, contracts, other business revenue and province before claiming credits.

Keep purchasing advice separate from tax advice

Captain Mining can clarify the equipment and service lines in a commercial quote. Your accountant determines the filing treatment, applicable forms and documentation requirements. Send model, quantity, destination and budget currency for an itemized purchase or hosting offer. A tax deduction does not guarantee that mining is profitable.

CRA / ARC · CCA / DPA

Discuss my equipment and hosting requirements