If you sold cryptocurrency at a loss in 2025, you can report that loss on your 2026 tax return to reduce your taxable income. Capital losses from crypto sales can offset capital gains from other investments, and any unused losses can be carried back three years or forward indefinitely. The key is tracking your adjusted cost base (ACB) and filing the correct forms with the Canada Revenue Agency (CRA). When you sell crypto for less than you paid for it, you've realized a capital loss. In Canada, only 50% of your capital losses are deductible (called the "allowable capital loss"), and they can only be used to offset capital gains, not other income. Here's what you need to know: - Capital losses must be reported on Schedule 3 (Capital Gains or Losses) of your tax return - You can only claim losses on crypto that was held as an investment, not for business purposes - The CRA requires you to calculate your adjusted cost base (ACB) for each coin or token you own - If you have no capital gains in 2025, you can carry the loss back or forward to use in other years Your adjusted cost base is
Yes, if you sold crypto for less than you paid for it, you can claim a capital loss. However, capital losses can only offset capital gains, not other types of income. You must have purchased the crypto as an investment, not as inventory for a business.
Adjusted cost base is the average cost of all units of a specific cryptocurrency. The CRA requires you to use ACB (not cherry-picked prices) to calculate your gain or loss when you sell. Tracking ACB correctly is essential for accurate tax reporting.
No. Capital losses from crypto can only offset capital gains from any source (stocks, real estate, etc.). They cannot reduce salary, employment income, or other types of income. Unused losses can be carried forward to future years or back three years.
You don't need to submit receipts with your tax return, but the CRA requires you to keep records for at least six years. Your records should show purchase and sale dates, amounts, prices, fees, and ACB calculations in case of an audit.
Losses inside RRSPs and TFSAs cannot be claimed for tax purposes because these accounts are tax-sheltered. Gains and losses inside these accounts do not affect your taxable income.