You know that only half of your capital gains are taxable in Canada?
If you make a $1,000,000 in profit with crypto, you only have to tax $500,000 of those.
Last year in February I cashed out $120,000 in capital gains through stocks. Only $60,000 were taxed at a rate of about 40%. So on $120,000 in capital gains I paid around $25,000 in taxes.
You may have a 50% tax rate on your capital gains if you make millions, but only on one half of your capital gains. The other half is tax free.
The 50% of your capital gains are taxed like income and depending in which tax bracket you are, you will have to pay more or less. If you have no other income besides the $120,000 in capital gains, you will only have to pay $10k in taxes. I had to pay more because I already make over $100k a year.
50%??
You know that only half of your capital gains are taxable in Canada?
If you make a $1,000,000 in profit with crypto, you only have to tax $500,000 of those. Last year in February I cashed out $120,000 in capital gains through stocks. Only $60,000 were taxed at a rate of about 40%. So on $120,000 in capital gains I paid around $25,000 in taxes.
You may have a 50% tax rate on your capital gains if you make millions, but only on one half of your capital gains. The other half is tax free.
https://www.wealthsimple.com/en-ca/learn/capital-gains-tax-canada
The 50% of your capital gains are taxed like income and depending in which tax bracket you are, you will have to pay more or less. If you have no other income besides the $120,000 in capital gains, you will only have to pay $10k in taxes. I had to pay more because I already make over $100k a year.