Key takeaways
- Base App does not report directly to the CRA.
- The CRA can trace your activity when you move funds between Base App and an exchange registered in Canada.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Baseâs tax reporting policies within Canada. Weâll also break down a simple way to report your Base taxes in minutes.
What is Base App?
Base App (formerly known as Coinbase Wallet) is a self-custody crypto wallet with built-in social and trading features.
Base App doesnât send tax forms or collect Know Your Customer (KYC) data. However, your activity can be linked to your identity if youâve moved crypto between Base App and an exchange registered in Canada.
Does Base App report to the CRA?
No. Base App doesnât report to the CRA or issue tax forms.
That said, the CRA likely can track your Base App transactions:Â
- Blockchain transactions are publicly visible. If you transferred between Base App and an exchange with KYC, itâs likely your wallet address can be linked to your identity.Â
- In 2027, the Crypto-Asset Reporting Framework (CARF) will require Canadian exchanges to share detailed transaction data with the CRA. It's likely this data will make it easier than ever for the CRA to identify âanonymousâ wallets.
If I use Base App in Canada, do I owe taxes?
Yes. Crypto transactions on Base App and other platforms are subject to tax.
- Capital gains: Selling, swapping, or spending crypto is taxable. In Canada, 50% of your net gains are counted as income.
- Income: Rewards from staking, mining, or airdrops are taxed as income based on value at the time of receipt.Â
Moving crypto between your own wallets is not taxable.
Does Base App have KYC?
No. Base App does not require ID for use.Â
However, if you buy or sell crypto through Coinbaseâs integrated exchange service, you will be asked to verify your identity.
Is Base App legal in Canada?
Yes. Base App is legal to use in Canada.
You are required to accurately report taxable income from Base App and other platforms.
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How do I reduce my Canadian taxes from Base App activity?
While you canât evade taxes, there are strategies to legally reduce your tax bill in Canada:Â
- Tax-loss harvesting: By selling crypto at a loss, you can offset gains and reduce your tax bill.â
- Use crypto tax software: Crypto tax software like CoinLedger can help you save time and effort and spot your biggest tax-saving opportunities.
Looking for a simple way to report your Base taxes? With CoinLedger, you can import your Base transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Base and dozens of other wallets, blockchains, and cryptocurrency exchanges to automate the entire crypto tax reporting process.
You can get started with a free preview report today.
How CoinLedger can help
Hereâs how CoinLedger makes Canadian crypto taxes easy:
- Import transactions from hundreds of wallets and exchanges, including Base App!Â
- Track your total amount of capital gains, losses, and incomeÂ
- Generate ready-to-file CRA tax reports in minutesÂ
Get started with a free CoinLedger account today.
