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2025-12-08

How Investing vs Trading impacts tax

In most cases of buying and selling cryptocurrency as a retail investor, you are participating in investing rather than trading. The two are treated differently for tax purposes.

  • Investing is subject to capital gains tax or income tax, depending on the nature of the transaction.
  • Trading in this case refers to self-employment which is subject to income tax and National Insurance Contributions.

The key difference between investing and trading – along with the different tax treatments, is how losses generated in the crypto-activity can be used.

In their guidance, HMRC have explicitly stated that they would expect it to be exceedingly rare that any crypto-activity constituting buying & selling crypto would be classified as “trading”.

If you are uncertain, speak to a tax advisor as there are always exceptions, including but not limited to, developing tokens and large scale mining.

How is crypto tax calculated in the United States?

You can be liable for both capital gains and income tax depending on the type of cryptocurrency transaction, and your individual circumstances. For example, you might need to pay capital gains on profits from buying and selling cryptocurrency, or pay income tax on interest earned when holding crypto.

CoinLedger

CoinLedger is an accessible crypto tax platform with over 1,000 exchange and wallet integrations.

Best for: Users who want a simple, straightforward experience without complex DeFi needs.

Key differentiator: Offers an unlimited transaction plan for high-volume traders at a fixed price.

Pricing: $49 (100 transactions) to $499+ (10,000+ transactions).

Limitation: Does not generate Schedule D forms - you will need to complete this manually or with other software.

Notable: Strong NFT support with OpenSea integration.

CoinTracker

CoinTracker is a portfolio tracker and tax calculator supporting over 30,000 cryptocurrencies.

Best for: Users who prioritize portfolio tracking alongside tax reporting.

Key differentiator: Direct integrations with TurboTax and H&R Block Desktop.

Pricing: $59 (100 transactions) to $599 (10,000 transactions), with full-service options up to $3,499.

Limitation: Customer support is limited on lower-tier plans - priority support requires the $599 Ultra plan.

Notable: Good security with end-to-end encryption and SOC 2 compliance.

ZenLedger

ZenLedger offers both DIY crypto tax reports and professional full-service accounting.

Best for: Users who want tax loss harvesting included at every pricing tier.

Key differentiator: Tax loss harvesting is available on all plans, not just premium tiers.

Pricing: $49 (100 transactions) to $399 (15,000 transactions).

Limitation: Only offers 400+ exchange integrations - significantly fewer than competitors. Some users report customer support issues with long wait times.

Notable: TurboTax integration and 14-day refund policy.

blog
Dec 8
,
 
2025
 - 
10
min read

Product Update: Spam Filtering

Our new spam center gives you control over any crypto spam currencies that slip through automated detection. Mark entire currencies as spam in one click, manage all spam controls centrally, and maintain clean transaction data for precise reports.

Key takeaways
This tax guide is regularly updated: Last Update  

Wham, bam, goodbye spam! Introducing the spam center

We automatically filter the vast majority of spam currencies for you. But for the occasional ones that may slip through, you now have direct control.

Our new spam center gives you three tools for the edge cases:

  • Currency-level spam filtering: Mark entire currencies as spam in one click when our automated filters miss one. Your transaction tables declutter instantly.
  • Centralized management: All spam controls in one location. Check what's already filtered or add exceptions as needed.
  • Automatic application: Any manual spam settings you add apply across all transactions and reports immediately. No need to update multiple places.

Most users won't need to touch this. But if you spot spam we haven't caught, you can fix it in seconds rather than categorizing individual transactions.

New category: spam out

We've added a spam out category to handle a specific edge case: fake outgoing transactions that appear in your wallet but weren't initiated by you.

These transactions exist on-chain but represent spam activity rather than genuine transfers. The spam out category lets you classify them correctly, keeping your disposal records accurate and your capital gains calculations precise.

Standard spam filtering catches incoming junk. Spam out handles the fake outgoings. Together, they give you complete control over spam classification.

Log in or sign up to see the spam updates in action.

The information provided on this website is general in nature and is not tax, accounting or legal advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider the appropriateness of the information having regard to your own objectives, financial situation and needs and seek professional advice. Summ (formerly Crypto Tax Calculator) disclaims all and any guarantees, undertakings and warranties, expressed or implied, and is not liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or Consequential Loss or damage) arising out of, or in connection with, any use or reliance on the information or advice in this website. The user must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information in this website is no substitute for specialist advice.

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Try Summ today

Import your transactions and generate a free report preview.

Blog

08 December 2025

X

 Min read

Product Update: Spam Filtering

Our new spam center gives you control over any crypto spam currencies that slip through automated detection. Mark entire currencies as spam in one click, manage all spam controls centrally, and maintain clean transaction data for precise reports.

Team Summ

This tax guide is regularly updated: Last Update 

....

December

8

2025

Wham, bam, goodbye spam! Introducing the spam center

We automatically filter the vast majority of spam currencies for you. But for the occasional ones that may slip through, you now have direct control.

Our new spam center gives you three tools for the edge cases:

  • Currency-level spam filtering: Mark entire currencies as spam in one click when our automated filters miss one. Your transaction tables declutter instantly.
  • Centralized management: All spam controls in one location. Check what's already filtered or add exceptions as needed.
  • Automatic application: Any manual spam settings you add apply across all transactions and reports immediately. No need to update multiple places.

Most users won't need to touch this. But if you spot spam we haven't caught, you can fix it in seconds rather than categorizing individual transactions.

New category: spam out

We've added a spam out category to handle a specific edge case: fake outgoing transactions that appear in your wallet but weren't initiated by you.

These transactions exist on-chain but represent spam activity rather than genuine transfers. The spam out category lets you classify them correctly, keeping your disposal records accurate and your capital gains calculations precise.

Standard spam filtering catches incoming junk. Spam out handles the fake outgoings. Together, they give you complete control over spam classification.

Log in or sign up to see the spam updates in action.

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Frequently asked questions

How does the CRA treat cryptocurrency for tax purposes?

The Canada Revenue Agency (CRA) views cryptocurrency as a commodity, similar to a precious metal like gold. This means it's not considered legal tender like the Canadian dollar. How your cryptocurrency transactions are taxed depends on why you're using it. If you occasionally buy and sell cryptocurrency for investment purposes, any profits or losses are generally considered capital gains or losses. On the other hand, if your activities are more frequent, involve mining or staking, or are done with a profit motive, your cryptocurrency transactions may be considered business income or losses. The CRA requires you to report all taxable cryptocurrency transactions. This includes selling cryptocurrency for Canadian dollars or another cryptocurrency, using cryptocurrency to buy goods or services, receiving cryptocurrency as payment, and earning cryptocurrency from mining or staking. Failing to report these transactions can result in penalties or audits.

What are the tax implications for crypto-to-crypto trades in Canada?

The CRA considers crypto-to-crypto trades as dispositions. This means each trade triggers a capital gain or loss, even though you haven't received any Canadian dollars. To calculate the gain or loss, determine the adjusted cost base of the cryptocurrency you're disposing of and calculate the proceeds of disposition using the fair market value (in Canadian dollars) of the cryptocurrency you're acquiring.

Do I need to pay GST/HST on cryptocurrency transactions?

GST/HST may apply to cryptocurrency transactions in certain situations. If your business accepts cryptocurrency as payment for goods or services, you need to charge GST/HST. The tax is calculated on the fair market value of the cryptocurrency at the time of the transaction. Since the CRA treats crypto as a commodity, accepting it as payment is considered a barter transaction. Both parties involved in the barter may need to account for GST/HST. GST/HST generally doesn't apply to personal cryptocurrency transactions unless your activities are considered a business.

What happens if I fail to report cryptocurrency on my taxes in Canada?

Failing to report your cryptocurrency transactions can have serious consequences. The CRA can impose penalties and charge daily compound interest on any unpaid taxes. You may be subject to a tax audit, and in severe cases, you could face criminal charges. If you realize you made a mistake or omission on your tax return, you can correct it through the CRA's Voluntary Disclosures Program. This allows you to come forward and disclose the information before the CRA starts an audit. It's always best to be proactive and report all your cryptocurrency activity accurately and on time.

How does the free trial work?

The platform is free to use immediately upon signup, allowing you to import your transactions and take advantage of our smart suggestion and auto-categorization engine, portfolio tracking, DeFi and NFT support. For access to reports, the tax loss harvest tool or chat and priority support, you will need to upgrade to the appropriate paid plan.

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