Five Things That May Prompt A Tax Audit Of Your Cryptocurrencies

The Canada Revenue Agency recently established a cryptocurrency-focused unit. This team is equipped with technological tools that help in tackling the tax auditing of your transactions. Here are five things that could trigger a tax audit of your cryptocurrencies.

1. Purchasing cryptocurrencies with your credit cards or bank accounts

Using a credit card or a bank account to purchase cryptocurrencies leaves a financial footprint that can draw attention from tax authorities. Major transactions are often scrutinized and financial institutions are required to report certain operations to tax authorities. If you often use your credit cards or bank accounts to buy cryptocurrencies, this could prompt the tax auditing of your cryptocurrencies.