Swapping One Crypto for Another in Canada: Gain Example

17 October 2026 · en-CA · Educational information · No affiliate links

Educational information only. Not tax, legal or investment advice. We are not the CRA and are not affiliated with it. Check canada.ca and consider a qualified Canadian tax professional. Sources read October 17, 2026. Anything marked expected should be re-checked (re-check planned December 1, 2026). Examples use made-up numbers. This page contains no affiliate links.

Short answer: The CRA says a disposition of a crypto-asset occurs when you trade or exchange it for government-issued currency or another type of crypto-asset. A swap is therefore a disposition even though no Canadian dollars change hands. If the crypto is held on account of capital, you compute a capital gain or loss on what you gave up: its fair market value at the time less its adjusted cost base (ACB) and your outlays and expenses of disposing.

The CRA's example (2025 figures)

On July 30, 2025 you bought 100 units of crypto A for $20,600, paid with 2.5061 units of crypto B worth $8,220 per unit ($20,600 in total). You originally paid $15,000 for those units of B.

If B's original cost had been $25,000, the result is a $4,400 capital loss, of which $2,200 is an allowable capital loss (deductible only against taxable capital gains).

Business or capital

The CRA's example assumes the person intended to hold crypto B as a long-term investment. If activity is consistent with a business, the result is business income or loss instead (trader or investor).

Where the superficial loss rule can matter

A swap at a loss is a disposition, so the loss can be tested against the 61-day window if you or an affiliated person acquire the same or an identical property (the rule). Whether the crypto you swap into is "identical" is unresolved (identical property).

Made-up example

You swap 1 unit of X (ACB $3,000, worth $2,500 on the day) for Y: capital loss $500, allowable loss $250 at 50%.

FAQ

What value do I use? The CRA example uses the fair market value on the date; valuation guidance on the CRA's valuation page was not read.

Is a loss deductible against my salary? No, only against taxable capital gains (capital losses).

What we could not verify

Sources (official)