Crypto Declaration Quebec: How to Fill Out TP-21.4.39-V

Crypto investors in Quebec need to complete the Revenu Quebec Crypto Asset Return to report their assets. Learn how to fill out TP-21.4.39-V in our guide.

What is the Revenu Quebec Crypto Asset Return?

The TP-21.4.39-V (Crypto Asset compliance form) was introduced by Revenu Québec for the 2024 tax year to improve transparency around cryptocurrency gains

It’s filed alongside your annual Québec income tax return and is required for individuals and businesses that hold or use crypto assets.

The form is designed to give Revenu Québec a clearer picture of what types of crypto assets taxpayers own and how they’re being used. You’ll report all types of gains and losses.

What information do I need to complete TP-21.4.39-V?

To complete the form, you’ll need a clear, organised view of your crypto activity across the entire tax year.

At a high level, this includes:

• The types of cryptoassets you held or used

• A description or use case for each asset

• The adjusted cost base (ACB) and proceeds for each asset disposed of during the year

• Any income earned (e.g., staking, mining)

• Details of disposals (sales, trades, or spending crypto)

The form is broken into sections based on how your crypto is used, so you’ll need to group your data accordingly, rather than just listing transactions.

Part 1: Filer information

This is the basic identification section.

You’ll enter:

• Your name

• Your address

• Your SIN or business number

This simply links the crypto disclosure form to your income tax return.

Part 2: Period covered

This confirms the tax year the form applies to.

In most cases, this will match your standard taxation year (e.g., Jan 1 to Dec 31 for individuals).

Part 3: Information about the cryptoasset owner

This section is just a check box confirming whether or not you held crypto at the end of the reporting period you’re covering.

Part 4: Profit or loss from cryptoassets

This is the main reporting section and is broken into three subsections based on how your crypto activity is treated.

Part 4.1 – Capital gains (or losses)

Use this section if your crypto activity is treated as capital property (i.e., investing).

Capital gains treatment applies when you hold crypto as a personal investment, meaning you purchased the asset with the intention of long-term appreciation, and your trading activity does not resemble a business. The key factors are intention at the time of purchase, frequency of transactions, and whether you spend significant time managing your portfolio. Most individual crypto holders will fall into this category.

You’ll report totals for:

• Proceeds of disposition (what you received when selling or trading crypto)

• Adjusted cost base (ACB)

• Capital gains or losses

This covers typical investor activity like:

• Buying and selling crypto

• Trading between cryptocurrencies

• Using crypto for purchases

Part 4.2 – Business income (or losses)

Use this if your crypto activity is considered a business.

This can apply if you:

• Trade frequently or operate like a trader

• Run a crypto-related business

• Mine crypto at a commercial scale

You’ll report:

• Gross income (total amount generated before costs)

• Net income (total proceeds after costs)

Part 4.3 – Property income (or losses)

This section is for passive income generated from holding or lending crypto assets. Unlike capital gains, you do not need to sell the asset to trigger this income; the return comes to you simply from holding or making the asset available to a protocol or platform.

Examples include:

• Staking rewards (tokens earned by locking up crypto to validate transactions on a proof-of-stake network)

• Lending interest and DeFi yields (income earned by depositing assets on platforms such as Aave, Compound, or centralised lending services)

• Airdrops received for simply holding an asset (valued at fair market value in CAD on the date of receipt)

You’ll report the income earned based on the FMV in CAD on the day you received it.

Part 5: Certification

This is the final declaration.

You’ll:

• Confirm the information is accurate and complete

• Sign and date the form (or certify electronically)

How to categorise crypto assets for TP-21.4.39-V?

TThere’s no strict or universally defined classification system from Revenu Québec or the CRA. Instead, classification depends on the function and utility of the token.

That means you’ll need to apply reasonable judgment based on how the asset is used. Revenu Québec offers classification examples in its filing guidance:

• Stablecoins: pegged to a fiat currency or commodity (e.g., USDC, USDT, DAI)

• NFTs: non-fungible token (unique digital asset; cannot be exchanged 1:1 with another token)

• Security tokens: represent ownership or profit rights in a real-world asset (e.g., tokenised equity, tokenised debt)

• Privacy coins: privacy-preserving at the protocol level by design (e.g., Monero, Zcash)

• Cryptocurrencies: pure medium of exchange with no platform function (e.g., Bitcoin, Litecoin)

• Utility tokens: everything else; any token that grants access to a platform, service, or ecosystem and does not fit the above categories (this is the default catch-all classification).

If an asset could fit multiple categories, choose the one that best reflects its primary use in your portfolio.

What if I have more assets than I can fit in the form?

Each section of the form only includes a limited number of rows.

If you hold more cryptoassets than the form allows, complete an additional copy of the relevant section (Part 4.1, 4.2, or 4.3 as applicable) and attach it to your return.

How to fill out TP-21.4.39-V?

Here’s how to do it step by step:

1. Collect your data: Export your transaction history from all exchanges, wallets, and platforms (or use a crypto tax calculator to do it for you).

2. Organise by asset: Group your activity by each cryptoasset you held or used.

3. Determine income type: Classify each activity as capital gains (investing), business income (trading as a business or mining), or property income (staking, lending, passive yields).

4. Calculate values: Determine the fair market value in CAD on the date each asset was sold or disposed of, then calculate your ACB, proceeds, and gain or loss for each transaction.

5. Categorise assets: Assign each asset to a classification (payment token, utility token, etc.).

6. Complete each section as relevant to your investments.

7. Add extra pages if needed: Include additional copies for any section where you exceed the row limit.

8. Review everything: Double-check values, classifications, and completeness before filing.

How Koinly can help

Koinly is working on generating a prefilled TP-21.4.39-V form, but for now, you can use a simple workaround to get the numbers you need:

1. Generate a Capital Gains report for the year

2. Open the file in Google Sheets

3. Select your data, then click: Insert → Pivot table

4. Choose “New Sheet”

5. Build your pivot table:

   • Add Asset to Rows

   • Add the following to Values:

     • Amount

     • Proceeds

     • Cost

     • Gain/Loss

6. Use the totals to:

   • Populate disposals (Part 6)

   • Help estimate values and income (Parts 4 & 5)

This gives you a clean, asset-by-asset summary so you can fill out the form without manually aggregating everything.