Al got the cryptocurrency bug and has been trading on this throughout 2021. He thought that he did not have to report his cryptocurrency trades and just recently found out that the trades are considered a capital gain, just like trading stocks or mutual funds. He is not thrilled to know that he must amend his 2021 personal tax return to report them, especially as he knows that he has some big gains. At least he is taking comfort in knowing that he sold them before the downturn in 2022 where many have lost money on their cryptocurrencies. Below are his sales in 2021:

Purchased Sold

Bitcoin $10,000 $25,000

Ethereum $5,000 $9,000

Tether $2,000 $3,000

Al also had a capital loss of $2,000 on some mutual funds that he sold in December 2021 which he also did not report but knows that he can claim this against his capital gains. Knowing that he is in the highest marginal tax bracket, use Table A to help calculate Als taxes on the sale of the investments.

a. $7,575

b. $2,225

c. $6,742

d. $5,331

e. $4,798

show calculations

Marginal tax rate for capital gains is a \% of total capital gains (not taxable capital gains). Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is 15%. For more information see Quebec dividend tax credits