Pro Tax Tips – A recipient spouse must report gains correctly from a subsequent disposition of cryptocurrency or NFTs

Pro Tax Tips – A recipient spouse must report gains correctly from a subsequent disposition of cryptocurrency or NFTs

When a former spouse received cryptocurrency or NFTs during a marriage breakdown, he or she must report the gains correctly from a subsequent disposition of such asset. If a taxpayer doesn’t know whether to characterize the gains as capital gains or business income, it is highly recommended to consult with an experienced Canadian tax lawyer for proper guidance. If a taxpayer fails to report such gains, the VDP may provide a second chance for the individual to come clean with partial relief from interest and penalties.