As the tax season approaches in 2024, Crypto Investors using TurboTax Canada may find themselves wondering how to navigate the complexities of reporting crypto taxes. Fear not – this Step-by-Step guide will walk you through the process step by step, ensuring a smooth filing experience ahead of the April 30 deadline.

BUT FIRST - Sign up with Kryptos!

Before jumping into TurboTax, it's crucial to have your crypto transaction information organized. This is where Kryptos comes into play.

1. Sign Up and Connect:

• Begin by signing up for a Kryptos Account.
• Connect all your wallets, exchanges, and blockchains to ensure comprehensive coverage.
• Confirm that your settings are tailored for Canada, specifying CAD, the Adjusted Cost Basis method, and the correct financial year.

2. Download the Complete Tax Report:

Head to the tax report page on Kryptos and download the Complete Tax Report. This document will be the foundation for your TurboTax filing.

Then on TurboTax

With your Kryptos information at the ready, transition smoothly into TurboTax Canada. Follow these instructions, we'll focus on the online version, though the desktop version may have slight variations

1. TurboTax Setup:

• Log in or sign up for your TurboTax Canada account.
• Initiate a new 2024 return by Selecting “start a new 2024 return”.
• Opt for the Premier Plan or higher, as these cater specifically to crypto taxes.

2. Personal Details:

Fill in your personal information to set up your TurboTax account. Feeling lost! Feel free to check out the TurboTax Site for more information regarding filing with TurboTax. 

Unsure about what counts as income or capital gain?, take a look at our guide on crypto taxes in Canada.

Reporting Crypto Capital Gains in TurboTax 

1. Access the Investments Section:

• Log in to your TurboTax Canada account.
• In the menu on the left, select the "Investments" section.

2. Investments Profile:

Click on "Investments Profile" to navigate to the relevant page.

3. Select Capital Gains or Losses:

Check the box for "Capital Gains or Losses" and, if applicable, include interest and other investments.

4. Navigate Through Pages:

Click "Continue" to progress through the relevant pages.

5. Capital Gains Page:

You'll land on the capital gains page in TurboTax. Note that not all sections need completion for cryptocurrency capital gains. Some are intended for different types of assets.

6. Virtual Currency Transactions:

From the drop-down menu next to 'Type of Capital Property Disposed Of,' select 'Virtual Currency Transactions (Cryptocurrency, Tokens, etc.).'

7. Copy and Paste from Kryptos:

• Refer to your Kryptos Complete Tax Report.
• Copy the figures for 'Proceeds from Sales,' 'Acquisition Costs,' and, if applicable, 'Allowable Expenses.'
• Paste these figures into the corresponding boxes in TurboTax.

8. Review and Confirm:

• Click "Done" to let TurboTax calculate your capital gains.
• Double-check the figures with Kryptos Complete Tax Report.
• Review and amend other information on the page if necessary.

9. Completion:

Click "Done" to finalize the capital gains reporting section.

Additional Considerations:

• If you have capital gains or losses from other sources, this is the section to report them.
• TurboTax Canada may have specific sections for unique circumstances – explore these for detailed reporting.

A Few Important Notes

• The blog post highlights the need for a smooth and precise data transfer from Kryptos to TurboTax.
• Special attention is given to capital gains and income reporting, with detailed steps for each.
• The article reminds users that provincial differences might lead to additional reporting requirements.
• Readers are encouraged to refer to the Canada Revenue Agency (CRA) guidance for clarity on allowable expenses.

With the help of Kryptos and TurboTax Canada, reporting crypto taxes in 2024 becomes a manageable task. By following this detailed guide, you'll not only meet the April 30 deadline but also ensure accuracy in your crypto tax filings. Stay informed, organized, and tax-savvy as you embark on this journey through the evolving landscape of cryptocurrency taxation.

FAQs

1. Why should I sign up with Kryptos before using TurboTax Canada for crypto tax reporting in 2024?

Before diving into TurboTax, it's crucial to have your crypto transaction information organized. Kryptos helps streamline this process by allowing you to connect all your wallets, exchanges, and blockchains, ensuring comprehensive coverage. The platform also provides a tailored Complete Tax Report, serving as the foundation for a smooth TurboTax filing.

2. How do I download the Complete Tax Report from Kryptos for TurboTax Canada?

Once your crypto transactions are organized on Kryptos, head to the tax report page and download the Complete Tax Report. This document will be essential for your TurboTax filing, providing a detailed overview of your crypto activities.

3. Which TurboTax plan should I choose for crypto tax reporting in Canada?

To cater specifically to crypto taxes, it's recommended to opt for the Premier Plan or higher when setting up your TurboTax Canada account. These plans include features that align with the complexities of reporting cryptocurrency transactions.

4. How do I report crypto capital gains in TurboTax Canada for the 2024 tax year?

Reporting crypto capital gains in TurboTax Canada involves navigating through the Investments section. Follow the steps outlined in the blog, including accessing the Investments Profile, selecting Capital Gains or Losses, and inputting information from your Kryptos Complete Tax Report. Ensure accuracy by reviewing and confirming the figures before finalizing the reporting section.

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All content on Kryptos serves general informational purposes only. It's not intended to replace any professional advice from licensed accountants, attorneys, or certified financial and tax professionals. The information is completed to the best of our knowledge and we at Kryptos do not claim either correctness or accuracy of the same. Before taking any tax position / stance, you should always consider seeking independent legal, financial, taxation or other advice from the professionals. Kryptos is not liable for any loss caused from the use of, or by placing reliance on, the information on this website. Kryptos disclaims any responsibility for the accuracy or adequacy of any positions taken by you in your tax returns. Thank you for being part of our community, and we're excited to continue guiding you on your crypto journey