This article is originally posted at Coincentral.com.

Cryptocurrency Mining Scene in Canada

China. When most people think about cryptocurrency mining, their thoughts turn to the economic powerhouse with around 60 percent of the world’s hash power. That’s because they’ve proven themselves to be particularly prolific at making things. And Bitcoin is no exception.

Home to some of the largest cryptocurrency mining companies, including BW, BTCC, and F2Pool, the Asian giant leads the way in the space. But that doesn’t mean that other jurisdictions aren’t starting to take cryptocurrency mining seriously. And there’s still plenty of room to get in on the scene. Canada is one of the many countries taking advantage.

What Do You Need for Cryptocurrency Mining?

Power. And bucketloads of it. So if you already struggle to pay your electric bill at the end of the month, mining isn’t for you. Cryptocurrency mining has typically lent itself to places with cheap power, such as China and Eastern Europe. In fact, Georgia, home to BitFury, is the second most active country in the Bitcoin mining space.

Yet, as we move into the future, and cryptocurrency begins to enter the conscience of the mainstream, continuing to burn through the world’s finite resources isn’t going to cut it. For widespread adoption to occur (beyond weeding out scams and improving scalability), cryptocurrency mining needs to be environmentally sustainable.

And since mining also produces a lot of heat, colder climates make sensible destinations. Iceland, Sweden, and other places that can absorb excess heat from the miners are proving to be popular places. Iceland also has an abundance of geothermal energy, perfect for mining using renewable energy sources.

What’s Going on North of the Border?

North of the border, Canada is taking the cryptocurrency mining situation seriously. Quebec, in particular, has always been notable for its inexpensive power. This has lead to a plethora of companies focused on building out facilities there. And better than that? It’s renewable energy sources are in the form of hydropower, vital to sustainable mining.

The First Public Digital Currency Company in the World

Canadian mining company Hive made history when they went public on the Toronto Venture stock exchange in September of last year. They launched assets into the public market to give them exposure to the digital currency space.

Partnering with Genesis Mining (one of the largest cryptocurrency mining companies in the world), they saw immediate jumps in stock price by as much as 220 percent.

The stock went on to rally from $1 to over $6 in the period from October to December. This created interest in new public companies focused on cryptocurrency mining in Canada. Since then, Hut 8 went public, Crypto Global went public, and a number of other deals are in the pipeline.

Hydro Power

Hydro-Quebec has an abundance of green, renewable power at low prices. This makes it naturally attractive for cryptocurrency mining since companies (particularly public ones) must act responsibly in their selection of power.

“You have to expose pretty much everything about your business when you’re public,” says Cole Diamond, CEO of Canadian cryptocurrency exchange Coinsquare. “There’s been so much concern about the power that it takes for cryptocurrency mining and its effect on the environment, companies have to look to sustainable sources.”

Coinsquare is dipping its toes into cryptocurrency mining in Canada, partnering with mining facilities and MaaS (Mining as a Service) company Hyper Block. Actually, rather than toes, you could probably say they’re knee-deep in by now.

Georgia and China may be dominating the mining space, but Canada is starting to emerge as a leading player. “Canada is an enormous country with not a lot of people,” says Diamond, “we have power going to waste if we don’t use it.”

Stable Political Environment

Mining in Georgia and China may still be more inexpensive than Quebec, but political stability is a major selling feature of Canada. A lot of people are attracted to the relative stability that Canada provides, especially with uncertain regulation in the market.

Canada’s crypto-friendly environment makes it a safer bet than countries like China and parts of Eastern Europe, where banks refuse to deal with cryptocurrency exchanges (or are ordered not to do so).

The post Meanwhile North of the Border, Canada is Stepping Up Its Cryptocurrency Mining appeared first on Nanaimo Accountant.

Who qualifies?

Although there is an estimated 1.8 million Canadians living with a severe disability, only about 40% of them take advantage of the DTC. The reason for this surprisingly low number may lie in the fact that the Canada Revenue Agency has made the qualification process very frustrating with long wait times, vague qualifying criteria, and an approval team that may not be properly trained in determining medical eligibility. Having said this, the application process is available to any person suffering with a physical or mental disability, or their primary caregiver, who submits a properly filled out Form T2201 from a qualified medical practitioner. Although a submitted Form T2201 is a requirement, this doesn’t necessarily mean an automatic qualification, and is just the first step in the approval process for receiving the credit. CRA will then review the application and make a judgement based on a set of criteria that you can read more about here: https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/information-medical-practitioners/eligibility-criteria-disability-tax-credit.html

How much is it?

Although the approval process is rigorous, the payoff can be quite substantial for those people coping with a disability while working, or the primary caregiver of a person with disabilities. For the 2017 tax year, an adult can expect to receive a federal tax credit of up to $8,113, while a child under 18 years old qualifies for as much as $12,846. These figures represent the maximum federal tax credit for 2017, and the actual benefit will vary based on which Province you live and your reported income for that year. An added bonus is if you have lived with the disability for a number of years, CRA will allow for a claim to be back dated up to 10 years retroactively.

How do I claim it?

The application process is quite simple (fill out and submit a Form T2201), but it does require you have the form filled out by a qualified medical practitioner before submission. Your accountant can also help with reviewing the form and submitting it to the CRA once your qualified medical practitioner has signed off on it. Once your claim has been submitted, the CRA estimates the assessment period will take between 4-10 weeks, although many people have noted this is grossly underestimated and these claims can take several months to process. Frequently additional information is requested from your doctor before approval, and this can extend the approval time. Your best advice is to talk with your accountant to ensure you have all the documentation required before submitting your application to avoid any unnecessary delays.

The post Do you know about the Canada Disability Tax Credit? appeared first on Nanaimo Accountant.

The extreme volatility and massive growth in Bitcoin’s value has made it very attractive to some people looking for the next dot.com or get-rich-quick opportunity, but don’t think digital currency is exempt from CRA’s reach. Despite the relative anonymity of digital currencies, you are still required to report all income and gains involving cryptocurrencies to the CRA. Here are 5 of the most common questions to consider:

If cryptocurrency is anonymous, why should I report it?

Although cryptocurrency is generally considered anonymous, the reality is that they are what’s known as ‘pseudonymous’, meaning that it is not tied to an actual person, but rather to a specific set of keys. This means that the Bitcoin holder is not identifiable, but all transactions are publicly available.

Cryptocurrency Exchanges are usually required by law to collect a certain level of personal information from anyone registering as a user. In Canada, there is still no law in place that forces exchanges to reveal the identity of the holder, but at some point you will eventually cash out or purchase something with your digital currency, and that is when your transactions can be tracked.

What about purchases made with cryptocurrency?

Purchases made with any form of cryptocurrency are viewed the same as a bartering transaction in the eyes of the CRA. That means that any product or service you may exchange your bitcoin for can be subject to GST/HST, and you may also have a requirement to collect GST/HST on the digital currency you traded. Additionally, if you trade your cryptocurrency for a good or service at a higher value than you paid for the cryptocurrency, a gain is realized and income tax must be paid on this profit.

How should I report the sale of my Bitcoin?

If you cashed out on any of your cryptocurrencies last year, you are required to report any of your profits or losses to the CRA in the same manner you would report any investment in property (similar to stocks), meaning treating your profits or losses as business income or capital gains, depending on your specific situation.

What about trading one cryptocurrency for another?

An exchange of cryptocurrencies is viewed as a barter transaction for the purpose of taxation. The exchange is considered as a disposition of property, and each currency is assessed at their respective fair market value at the time of the transaction. Similar to a sale, the exchange can be treated as either business income or capital gains, depending on your specific situation.

What about the process of “mining” cryptocurrency?

If you have set up an operation to contribute to the “mining” or processing of Bitcoin transactions, or have invested in a company who is involved in these transactions, you are most likely being rewarded with Bitcoin or one of the many other cryptocurrencies, and these rewards need to be declared as income. You should also note that any losses or expenses incurred during this process can be claimed as deductions against the income being generated.

Final thoughts

As cryptocurrency is a relatively new concept, the laws around taxation are continuously being revised. The best approach right now is to talk to an accountant or lawyer knowledgeable in the study of cryptocurrency for your best advice on handling your specific taxation matters.

The post 5 Things You Should Know About Cryptocurrency Taxation appeared first on Nanaimo Accountant.

The current Working Income Tax Benefit is calculated at a rate of 25% of earned income over $3,000 with a reduction rate of 15% on income over $12,016 for singles and $16,593 for families, to a maximum benefit of $1,059 for individuals or $1,922 for families. To claim the Working Income Tax Benefit you currently need to complete a Schedule 6 and claim the calculated amount on line 453 of your return.

The new Canada Workers Benefit increases the basic rate to 26% of earned income over $3,000 as well as raising the reduction threshold to $12,820 for singles and $17,025 for families, while lowering the reduction rate from 15% to 12%, for a maximum benefit of up to $1,355 for individuals and $2,335 for a family. The CRA is also making claiming the benefit easier by automatically calculating the claim for anyone eligible to receive it so nobody will miss out on the benefit now.

This new program will come with a considerable price tag attached that the federal government has allocated an additional $500 million dollars per year on top of the current funding for the Working Income Tax Benefit. The goal is to encourage greater participation in the work force, boosting productivity and reducing reliance on other social programs, which should help offset the added costs of the program. So far economists are having mixed feelings about the changes and several have suggested that the increases are not significant enough to have any real impact on the labour market, but only time will tell. For the roughly 2 million Canadians who will see more money in their pockets at the end of the year, it’s a welcome change.

The post Understanding the new Canada Worker Benefit appeared first on Nanaimo Accountant.

Who is it for?

The ReFILE service is for individuals who have filed their returns online through NETFILE  and you must have already received your Notice of Assessment. If your return has not yet been processed, you must wait for your Notice of Assessment before taking advantage of ReFILE. If you did not file electronically, then you must send in a paper Form T1-ADJ, T1 Adjustment Request, to the CRA. The ReFILE is designed for making changes to your claim amounts and cannot be used for changes related to your personal information like: Marital Status, Address, Direct Deposit Details, etc., changes to this information can be made through your My Account link.

The ReFILE service is a very handy option for making quick changes, but it is limited to no more than 9 changes per tax year for each individual. For a complete list of details and exclusions, please visit the Canada Revenue Agency’s ReFILE online information page.

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