Adjusted cost base by average cost
Units of the same cryptocurrency are identical properties, so you do not choose lots. Every purchase adds its cost (including fees) to the total ACB, and every disposition removes cost in proportion: ACB per unit is total ACB divided by units held. This is why the calculator shows the remaining units and ACB per unit after the last trade โ the number you carry into next year.
A trade of one coin for another is a disposition of the coin given up at the fair market value of what you receive, and that value becomes the cost of the new coin. Enter it as a sell and a buy.
50% inclusion and losses
Half of a net capital gain is a taxable capital gain. A proposal to raise the inclusion rate to two-thirds above $250,000 was cancelled by the federal government in March 2025, so 50% applies to all amounts. Half of a net capital loss is an allowable capital loss: it reduces taxable capital gains only, can be carried back three years or forward indefinitely, and cannot reduce employment income.
The superficial loss rule denies a loss when you, or an affiliated person, acquire the same property within 30 days before or after the sale and still hold it 30 days after. The denied loss is added to the cost of the replacement units. The calculator flags every loss with a purchase in that window; check the end-of-period holding yourself.
ACB/unit = total ACB / units held
gain = proceeds โ units sold ร ACB/unit
taxable gain = 50% ร net gain of the year
tax โ taxable gain ร combined marginal rateSources and simplifications
CRA "Guide for cryptoasset users and tax professionals" at canada.ca (search: cryptoasset guide CRA) and the Department of Finance statement of 21 March 2025 on the capital gains inclusion rate.
- Frequent trading, mining as a business or running a node for profit can make gains business income, taxed in full โ not modelled.
- The marginal rate is applied flat; provincial surtaxes and credits are not modelled.
- Staking rewards and airdrops are generally income when received and are not included.
Frequently asked questions
+How much of a crypto gain is taxable in Canada?
50%. Half of the net capital gain is added to your income and taxed at your marginal rate.
+Is trading crypto for crypto taxable in Canada?
Yes. It is a disposition of the coin you give up at the fair market value of the coin you receive.
+How is the cost of crypto calculated?
By adjusted cost base averaged over all identical units: total cost including fees divided by units held.
+What is a superficial loss?
A loss on a sale when the same property is bought within 30 days before or after and still held 30 days after. The loss is denied and added to the cost of the new units.
Calculations run entirely in your browser; nothing you type is sent to KOT.CASH. Results are estimates for information only and are not financial, tax or legal advice.