A Deeper Look into the Law: Blockchain – Taxation of Cryptocurrencies

Cryptocurrencies such as Bitcoin, Ether, Litecoin etc. are increasingly influencing business models of companies. Bitcoin Miners Hasrate is well equipped with materials that will further develpe your understanding of the Cryptocurrency legal frame work.  These companies also have to deal with taxation. Here you will find an overview of the tax treatment of virtual currencies and tokens. We present the most important points to you.

News: Capital gains on cryptocurrencies are taxable

In a recent judgment of February 14, 2023 (Az: IX R 3/22), the Federal Fiscal Court (BFH) decided that capital gains that a taxpayer could generate within one year from the sale or exchange of virtual currencies (currency tokens, payment tokens) achieved are subject to taxation as a private sale transaction .

In the present case, the taxpayer (plaintiff) had bought, exchanged and resold various cryptocurrencies. In detail, these were transactions with Bitcoins, Ethereum and Monero, which the taxpayer carried out privately. In the year of the dispute, 2017, he made a profit totaling 3.4 million euros. The tax office had subjected the profit from the sale and exchange of cryptocurrencies to income tax.

The BFH has now confirmed this: cryptocurrencies are so-called “other” assets that are subject to taxation as a private sales transaction if they are purchased and sold within one year.

Overview: what is it about?

The market for digital means of payment is growing strongly, albeit with sometimes large fluctuations. Politicians and financial authorities have also taken a look at digital currencies.

Companies that use and work with cryptocurrencies must above all consider possible income tax and sales tax consequences.

The Federal Ministry of Finance (BMF) issued a statement on sales tax in 2018 (letter dated February 27, 2018). According to this – in line with the case law of the European Court of Justice – cryptocurrencies are equated with conventional means of payment for sales tax purposes, insofar as they serve purely as a means of payment.

The income tax classification, on the other hand, has so far been very controversial. In the first supreme court decision of February 14, 2023, the BFH clarified that profits from the sale of cryptocurrencies are taxable under certain conditions. On May 10, 2022, the Federal Ministry of Finance (BMF) published a final letter on the income tax treatment of virtual currencies and tokens. The opinion of the BMF on the income tax treatment of private assets (margin no. 53 et seq.) is now confirmed in this respect by the BFH decision of February 14, 2023.

What are digital or virtual currencies?

  • The financial administration describes digital or virtual currencies as digitally represented units of value of currencies that are not issued or guaranteed by any central bank or public body .
  • The denominations of virtual currencies can be accepted by natural or legal persons as a means of exchange , even without the legal status of a currency.
  • The most well-known virtual currencies include, for example, Bitcoin , Ether, Litecoin and Ripple.

What are tokens?

Tokens are digital units of value that can embody claims or rights. They can serve as payment for services provided in the network or be allocated centrally by a project initiator independently of the provision of computer power. When this happens for the first time, it is called an Initial Coin Offering. Some start-ups use this method to collect capital and thus finance themselves.

Blockchain

Blockchain is an important technology for digitizing the economy and society. It is at the heart of all cryptocurrencies.

  • A blockchain is a multi-participant database with no central control that uses distributed ledger technology .
  • It is designed so that the inventory is tamper-proof and immutable, only allowing additions.
  • In the context of a virtual currency, a blockchain is a decentralized database in which all confirmed transactions are recorded, comparable to a decentralized ledger.

Proof of Work (Mining)

Mining is a process in which computing power is made available for transaction processing (block creation) . Units of virtual currency are allocated to the successful miner who created the block. This process is referred to as mining, based on gold digging.

Wallet

The wallet (translated purse, wallet, purse) is an application for creating, managing and storing private and public keys. In order to carry out a transaction of units of a virtual currency, each user needs a wallet. As a rule, a separate wallet is required for each virtual currency, since the public keys depend on the underlying blockchain.

Initial Coin Offering (ICO)

The term Initial Coin Offering is based on the English term Initial Public Offering (IPO), i.e. IPO. While an IPO involves the sale of shares, an ICO involves issuing tokens in exchange for units of virtual or government currency. As with an IPO, capital is collected with an ICO.

Proof of Stake (Forging)

In contrast to mining, proof of stake is also referred to as forging or minting, i.e. forging or embossing, sometimes also

How You Can Find Reliable Legal Advice

Going through the legal system is no simple matter, no matter how uncomplicated your reasons for doing so seem to be. It’s just not wise to enter into the situation without good legal advice. The following article can help you make the right decisions when looking to hire a lawyer and what your best moves are.

Never hire the first lawyer you come across. There are so many out there that it can be tempting to select the first one you come in contact with. Take your time and consult with a few before you make your decision. You don’t want to make the mistake of choosing the wrong one.

Make sure that you have a decent interaction with any attorney before you invest any money. You may have to spend a good amount of time with your lawyer, so it is important that you choose one that you don’t have any issues working with. Take the time to sit down with any potential attorneys and see if you get a good feel for them.

When choosing a lawyer, word of mouth is one of the best ways to find one. Ask friends or relatives for recommendations. They can give you honest feedback on their experience. They can tell you how well or poorly they did in their situation. This feedback can help you choose wisely.

A general practitioner is not always your best option. You might have a good lawyer you trust, but do not hesitate to hire a specialized lawyer if you need help with an issue your lawyer has no experience with. Do not hesitate to ask your usual lawyer for a referral.

It is important that the lawyer you hire is one who is experienced on the field you need help with. For instance, if you need a lawyer for a divorce, it would not be wise to hire a lawyer specializing in taxes. When you hire a lawyer familiar with the problem, you need help with, you have a better chance of positive results.

Discuss clearly with the lawyer what his or her role will be in your case. You want to make sure that they will file all the paperwork that is necessary and explain things to you every step of the way. Keep a journal and note all your interactions with the lawyer in it. This might come in handy if you and the lawyer later disagree on what was said or done in your case.

Keep a paper trail. Document all conversations and meetings with your lawyer. Take note of all questions asked, as well as their answers and record all arrangements and discussions of fees and charges. Lawyers are only human and make mistakes. Give yourself a layer of protection with excessive record keeping.

The legal system is complicated and overwhelming; don’t try DIY style or you risk losing before you even get started. Use the advice above and hire reliable representation for your ordeal. The lawyer you choose can mean the difference between resolution of your issue or a prolonged and dreadful experience.…

The Fine Art Of Finding A Good Attorney

When legal troubles arise, it is time for you to hire a lawyer. However this doesn’t mean you simply look in the phone book and hire the first lawyer you come across. You need to choose a lawyer that is best suited for your needs. Use the following article to help guide you with your search for a quality lawyer.

When choosing a lawyer, word of mouth is one of the best ways to find one. Ask friends or relatives for recommendations. They can give you honest feedback on their experience. They can tell you how well or poorly they did in their situation. This feedback can help you choose wisely.

Don’t assume that a specialist lawyer is more expensive than a general practitioner. While a specialist might indeed have a higher hourly rate, they might charge you for less overall hours. A specialist will not need to spend as much time learning and researching laws regarding a case that a general practitioner would.

If you need legal help, don’t necessarily use the lawyer you have worked with in the past. You may need a particular type of attorney, someone who specializes in the type of case you are involved in. Don’t worry, though. A specialist isn’t necessarily expensive, so you should be able to afford what you need.

When picking out a lawyer, be sure you learn whatever you can about their reputation. Looking at online reviews and the state bar association can help you see if you should choose a certain lawyer or not. Doing this research will help you save a lot of time and money.

Avoid lawyers that use the term “slam dunk” in regards to any situation or case. Seasoned legal professionals know that the law is rarely a cut and dry matter. Otherwise, lawyers might not need to exist at all! You do want a confident attorney, but not an arrogant or ignorant one.

A good to to remember if you’re dealing with a lawyer that’s hard to reach, is to send a polite letter to them urging them to get to work. Threatening to sue them is not the way to go. They might turn out to be an amazing lawyer but may not be very punctual.

When meeting with a prospective attorney, ask him or her who you will primarily be talking to about your case. In some situations, lawyers give part of their caseload to a junior associate. If you feel you really connect with a certain attorney, suddenly finding out you will be working with another person may be quite upsetting. These feelings could be exacerbated if you don’t get along with the other person, too.

Finding a lawyer in this country is easy. Finding a good lawyer is an entirely different story. With so many attorneys out there who are just interested in your money, it can be difficult to find a reputable one who has your best interest at heart. Use the tips you’ve just read to help you with your search.…

Are You Seeking The Services Of A Lawyer? Check Out These Helpful Tips!

If you’re in search of a good lawyer, look no further! It’s time you learned some great advice to help you through this process and very important decision. Keep reading to learn more about what you need to know in order to have the best lawyer standing in your corner on the day you go to court.

Before you sign up for a lawyer’s services, find out about his or her past. The fact that a lawyer passed the bar does not by itself make him a good attorney. Be aware of their record so you can be sure they will do a good job.

Make a budget when it comes to paying for legal fees. If you contact an attorney and they are above your price range, try to find someone else. While there is nothing wrong with going a little over your budget, you do not want to choose a lawyer that you will have trouble trying to pay.

Do not hire a lawyer without doing some background research. Look their name up on the Internet and talk to friends or relatives who might know the lawyer you are interested in. It is always in your best interest to choose a lawyer with an excellent reputation and good ethics.

You have a right to expect clear, consistent communication with your lawyer. He or she should be able to give you a general summery of what you can expect in terms of your case, as well as what potential issues might arise and what could be done to remedy these issues.

Make sure that you have a decent interaction with any attorney before you invest any money. You may have to spend a good amount of time with your lawyer, so it is important that you choose one that you don’t have any issues working with. Take the time to sit down with any potential attorneys and see if you get a good feel for them.

Legal proceedings can often be confusing and complicated when you lack a background in the law, so make sure to let your lawyer know when you are confused or if you a clearer idea of what to expect from your trial. He or she should return your calls in a timely manner.

Stay as organized as possible when you are working with a lawyer. This means that you should have all of the documentation in relation to your case on hand at all times. If you are unorganized, your lawyer can lose valuable time planning a strategy for your case, which may result in a loss.

When looking for a good lawyer, make sure to obtain personal references. Talking to the local community that have experienced issues similar to you. For instance, if you’re a victim of sexual harassment, speak with a women’s group. Ask them about the lawyers they had and what their experiences were like.

Surely you feel much better now about finding the right lawyer for your needs. It’s important that you use these tips you’ve learned so that you don’t have to worry about making a bad decision. Keep what you’ve read in mind, and find the lawyer that is going to bring you back home with a “win.”…

Facing A Legal Problem? A Good Attorney Can Help You

If you are thrust into a situation where you require the services of a lawyer, it is natural to experience anxiety and hesitation. It’s important that you remain calm. Finding the right lawyer just takes a willingness to learn a little about the law and who is best equipped to represent you. Read on for some expert advice.

What you tell your lawyer is confidential. This means that any business records, or sensitive information given to your lawyer, cannot be shared with any other third party.

If you need an attorney for a business matter, ask for referrals from people you know in the business field. You may get great recommendations as to what lawyer to choose. For example, if you’re dealing with small business law, you should speak with a banker, an estate broker, an accountant, and the like. These kinds of people speak with lawyers all the time and they can assist you in making a judgement.

Maintain records of each contact you and your lawyer have. Note the time, date, what you talked about, any money you paid, and what they said your bill was. This may assist you with handling issues that may occur later, such as creating larger bills or fees that are unexpected or that you don’t understand.

Figure out your budget. Make sure you have plenty to cover the costs. Check out the fee structure being offered by each lawyer. If they know your budget and your goals, then they can better decide if they can help you with your legal issues. Know what cost overruns are possible.

Be sure you know about the reputation of a lawyer before you hire that lawyer. The Internet will help you do this, as will the bar association near you. It will save you cash, time and stress.

Be a great communicator with your lawyer. If your lawyer needs something pertaining to deadlines for your case, be sure you give it to them. The more you work, the easier your case will be.

Although you may be able to find a great lawyer on the Internet, know that these lawyers are not usually properly screened. Always research anyone that these types of services recommend and then go in for a meeting with them as well.

Keep in mind that a lawyer can’t always work a miracle. If your lawyer claims you are guaranteed to win your case, then this is a red flag that you should avoid him or her. In legal matters, nothing is a sure bet.

Ask your attorney if there is any task you can personally perform to cut down your expenses. You might be able to prepare the paperwork for the court appearance. If you must get documents at the courthouse, inquire about getting them picked up by yourself so you don’t have to pay the law office for it.

Once you get these tips under your belt, it is easier to find the lawyer who will be right for your legal issues. Shopping for a lawyer is a lot like shopping for other services. Begin making needed calls, ask whatever questions you have, and help will soon be on its way. Finding the right lawyer can really make all the difference in the world.…

Filing A Claim For Personal Injury: Helpful Tips

There are several legal options for a personal injury. Be that as it may, you are probably like the vast majority of people who have no clue as to what to do. The following article has some great tips and tricks to help teach you what you can do if you ever need personal injury representation.

It is important to make your accident report as detailed as possible. You want to detail every problem that you’ve noticed physically after the accident. Emphasize every injury that you had to build credibility. Realize that if you feel a great deal of anxiety, this may be a symptom of your experience.

When personal injuries occur, it can be hard to find the right attorney. Don’t let this deter you, though; just make sure that you’re looking harder for the best lawyer available. Their experience will help you win.

Don’t be shy about asking questions when you meet with your attorney. Ask about the costs and how the process will play out. You want to feel as comfortable as possible during this process, and asking lots of questions will help.

When you hire a lawyer, you should get a retainer agreement in place early on. This lets you see all of the charges that you will have to pay in advance. Establish a payment schedule. Additionally, you should outline the terms under which the client/attorney relationship may be severed.

Don’t hesitate to find legal recourse following an injury. If you wait too long, you might not be eligible to file a personal injury lawsuit. You need to talk to an attorney right away and inquire about deadlines before fully deciding whether to start a case.

If you receive injuries in a car crash or while at work, get yourself a lawyer right away. You must not waste time when attempting to win a personal injury lawsuit. Getting a lawyer as soon as possible give him or her more time to prepare your case.

Avoid rushing, and take enough time to evaluate all the choices you have. The lawyer that you choose can make or break your case. There are new firms that pop up all the time, and what seemed like a good deal a month ago may soon become old news.

If you sustain an injury, keep your receipts. This will provide all of the proof you need for out of pocket expenses. If you don’t save receipts, you won’t be able to prove certain expenditures and likely won’t be compensated for them.

It is best to avoid giving a statement about your injury to your insurance provider without first meeting with an attorney. As helpful as insurance adjusters seem to be, they are usually looking for information to use against you in court. Speak with the attorney before the insurance company. Also, do not give them anything you’ve written or recorded yourself.

You should not decide to avoid legal procedures after sustaining a personal injury. In most cases you have the right to be compensated for any injuries or suffering that you have endured. Following the advice from this article will help you through your personal injury case.…

Everything You Need To Know About Hiring Attorneys

If you have experienced the court system, then you know how important attorneys are. While lawyers often get a bad rap, they can make a major difference to the outcome of your matter. You should find a good lawyer who can increase your chances of winning in court. Read on for some excellent tips on selecting a good lawyer.

Never hire a lawyer who approaches you out of the blue. If you are involved in a case that can be costly, they may be trying to scam you. Find a quality lawyer that has a solid reputation.

You can prevent issues by finding a good retainer. You can now focus on finding the right lawyer you can definitely trust. If you have an attorney on retainer, you’ll have someone to turn to for expert advice.

Make sure you identify your problems and concerns before looking for a lawyer. First you must think about if you’re really in need of a lawyer. For example, a lawyer is needed if you’re charged with an offense, have a lawsuit coming up or if you’re in a divorce. They can provide you with information that you never knew, which can save you money.

If you spend a high amount initially, you may make it back in the money you win in your case. They’ll take less time to complete your case than a general lawyer would, thanks to all the learning he’d have to do at your expense.

You want a lawyer who specializes in real estate when you have a real estate situation that has turned legal. This will ensure you get the best person to handle your case.

You should know what you can spend. It may not be worth it cost wise to file or fight a lawsuit. When trying to select an attorney, take a careful look at their fee schedule. Sit and talk to the lawyer about the budget and whatever you wish to achieve. It is important to understand what the average cost of your case should be and what may affect your costs.

During a meeting with a prospective attorney, do not hesitate to ask as many questions as possible. In the first consultation, the attorney should willingly answer all questions you have, small or big. They should ensure your questions are answered. If they don’t, move on to the next consultation.

Use an attorney referral service. They help you find the best lawyers. Check the standards for any service you choose to use to find a lawyer; some services have very detailed lists. Others use the standard set by the state bar in order to keep liability insurance to find favorable lawyers. These are things that you want to look at before deciding which referral service to go with.

After reading the article, your knowledge of finding a lawyer should have grown. You should actually feel as though you have the upper hand in your case. Make sure to use this information wisely and conduct further research. Learning more about lawyers and legal issues will help you win your case.…