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

The Reasons Why You Should Consider Hiring An Attorney

Are you in need of a lawyer but don’t know where to turn? Don’t worry because this article contains many helpful tips and tricks for finding the right lawyer to meet your needs. Keep reading so that you can learn how to put the worry to the side and come out on top with the right attorney.

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.

Your lawyer should be easy to get in touch with. Many people complain about not having a lawyer who is easily reachable. If your attorney is off playing golf, you would not wish to be left wondering about what could have happened.

Imagine taking on a lawyer who is about to enter court for the first time. That’s what will happen if you take a general lawyer into a case where a specializing lawyer is a better bet. Ask any lawyer you know for their recommendations, and you’ll be pleased with the outcome.

A good tip to keep in mind when hiring a lawyer is to be very wary of any lawyer who seems more interested in getting paid than winning your case. There are many unscrupulous lawyers out there who will try to get you to pay a contingency fee, or even get you to mortgage your house.

Check online to find out what sort of fees are typical for your legal issues. This will help you avoid being scammed down the road. Choose a lawyer who has a good track record and a great deal of experience to ensure that they don’t overcharge you for their own time-wasting mistakes.

Invest time into finding the right attorney. Don’t just hire the first person you hear about. Ask family and friends who they work with. Look up the person you are considering online and see if anyone left a testimonial regarding their work. You want to find a person that is going to help, not hurt, your case.

A good tip to keep in mind if you’re thinking about working with a lawyer is to give them as much information as you can. The more documents and information they have that pertains to a case, the better your chances are of winning. If you think a document might be worthless, you lawyer might think otherwise.

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.

Do you feel like you can better handle the selection process now for an attorney? If so, you should make sure you keep everything you’ve read in mind as you go about hiring yourself a lawyer. Remember that the right lawyer means better chances of winning your case, and knowing how to find the right one saves you much time.…

Ask For An Estimate Of Costs Before Hiring An Attorney

How can anyone know how to search for a lawyer? With the abundance of lawyers out there, it can be hard to find a good one that will help you rather than cheat you. Keep reading to know what you should look for in a lawyer.

A good tip if you’re looking to bring on a lawyer is to make sure you thoroughly investigate whether or not a certain lawyer will be a good fit. It’s generally a good idea to go over a few different lawyers at a time and compare them to each other.

Do not hire a lawyer who establishes the first contact. Lawyers who have to reach out to potential clients usually lack the qualifications needed or might even run scams. Therefore, take the time to hire a great lawyer who will be happy to serve you, but is not desperate.

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.

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.

Make sure your attorney has won other cases similar to yours before you sign a contract. Ask the lawyer for proof of his experience, don’t just take his word. If the information isn’t online, they should be able and willing to give it to you.

When you are going to a consultation with your lawyer, do not be scared to do your own interview. Ask him or her about their familiarity with the situation you are in, how much success they have, or anything else you feel you should know. If they refuse to answer your questions, they may be trying to hide something, meaning you may want to look elsewhere.

Once you have decided to hire a particular lawyer, make sure you receive a written retainer letter that specifically defines the scope of representation, the details of the services you are to receive and the applicable fee structure. By doing this, you will stand a much better chance of getting precisely what you bargained for and you will have useful documentation of the intended relationship should you need to pursue the lawyer in a malpractice action at some point.

You should set up a face-to-face meeting with an attorney before you hire them to help you with your case. It is nice to talk to someone that is personable and sociable, but you really need to ask questions if you want to find out whether or not your lawyer knows what they are doing.

Locating a lawyer that can help you with things may take a while. You shouldn’t go with the very first lawyer you find. Apply the tips from this article to make a choice that is the right fit for you.…

Facing A Legal Problem? A Good Attorney Can Help You

For those who are unfamiliar with the legal field, it can be worrisome and daunting. It is quite possible to do research and find a lawyer who can meet all of your needs. Keep reading to get information on choosing the best lawyer.

Keep your lawyer on retainer so you can ensure you’re prepared. This will prevent you from rushing to look for one in the case of an emergency. This also means you will have someone to turn to when you need it.

In the long run, it may be more cost-effective to invest in the services of a specialist lawyer. If your lawyer is not a specialist, he will have to spend a lot of time on research. That time comes right out of your pocket.

If your court case pertains to real estate like buying or selling a home or being sued by a former landlord, you need a real estate lawyer. This makes you more likely to win your case quickly and efficiently.

You should know that your lawyer cannot reveal what you tell him in confidence. In other words, if you discuss key issues related to your business or company, for example, he or she is not allowed to go to your competitors and disclose that information.

You need to speak with your lawyer about the best time for you to work together. Lots of attorneys work for clients without speaking to them for a while. Getting a schedule established helps you not encounter this situation.

Be sure that your lawyer has won cases similar to your case before you sign any contracts. Ask the lawyer for proof of his experience, don’t just take his word. If it not found on the Internet, ask the attorney for this information.

Maintain records of each contact you and your lawyer have. Be sure to include the date, time, and general minutes of the meeting. Especially take note of any bills paid, or other billing issues. This will help you handle any problems that can arise later such as unexpectedly big fees or fees that you can’t comprehend.

Speak with any lawyer you’re interviewing about the questions you have. At your first consultation, the prospective lawyer should answer any and all pertinent questions. They have to make sure your comfortable with their skills. Don’t be afraid to walk away if they do not, it just means they’re not the right choice for you.

If you need a lawyer, you should choose one you can easily communicate with. When a deadline looms, give your attorney everything and anything that is needed. This will help your legal situation, rather than hinder it.

Consider how the people who work in the law office treat you. Whenever you call, jot down how fast they return your call and how accessible the receptionist seems. If the staff of your lawyer’s office is not returning calls quickly or treating you politely, you should find another lawyer.

Needing a lawyer’s service is not a position anyone wants to find themselves in. However, if you understand and know how to choose a competitive lawyer, you will be prepared to face any eventuality which may occur. With any luck, the advice mentioned earlier will have given you a great starting point.…

Everything You Need To Know About Hiring Attorneys

Court can be intimidating, but it is a little less scary when you have a lawyer by your side. Regardless of the specifics of your case, it is important to have a skilled representative behind you. Follow the advice you’re just been given, and you can’t go wrong.

Did you know that your lawyer must keep all information you share confidential? For instance, if you speak with your lawyer about something dealing with your company, nothing can be discussed with your competition.

If you search for the word “lawyer” in your area on the Internet the results can be overwhelming. It is critically important to check out your choices to make certain you are getting the best. Check that your lawyer has no past history of ethical violations. Pick a lawyer who is above reproach. Use caution.

Talk to people you trust about whether or now they know of a good lawyer. You might get a terrific referral right off the bat. This can help you save both money and time.

Do your due diligence when you are searching for business lawyers. They may be able to share the name of a great attorney they had success with in the past. Small businesses should refer to bankers for advice. These people interact with lawyers a lot and can give a more informed opinion.

Use a notebook to write down all the details of any phone call or personal visit with your lawyer. Discussed content, amount paid, time and date should be recorded in the log. This will allow you to take on any problems you may have in the future like dealing with fees or bills you don’t agree with.

Be sure you know about the reputation of a lawyer before you hire that lawyer. Check with the local bar association and online reviews to find out what people are saying. Doing this research will help you save a lot of time and money.

Before you take on a lawyer, talk to your local bar association to find out whether they have had complaints in the past. If there’s a couple, they shouldn’t spoil the deal. Do hire another lawyer if they have tons of complaints.

Yes you can find local lawyers using online services, but don’t think that this means these lawyers are well vetted. Instead, you should research the recommended lawyers that these online services provide. Talk to them face-to-face prior to hiring them so that you can determine their history and whether or not they are a good fit for your case.

You should have everything prepared ahead of time before your meeting, as this will save you both money and time. Your lawyer will be able to calculate a quote and give some helpful advice adapted to your situation. Exercising some efficiency will go a long way in keeping costs down.

Dealing with legal problems will be much easier if you are well-prepared and can count on a professional to help you. That is exactly why you need lawyers to work the systems for you. Hopefully, this article leaves you in a good position to make the right choices and resolve the legal matter you face.…

Essential Factors To Consider When Finding A Lawyer

Do you need a lawyer for your case? This is the right place for getting help in choosing one. Continue reading this article for information that will help you find an attorney.

If you’re accused of a crime, you need to find a lawyer immediately. Do not take it upon yourself to handle the legal proceedings; you may end up in more trouble than before. Only a lawyer is qualified to handle the details and nuances of your case.

Prior to looking for a lawyer, carefully examine your issue. First ask yourself if you need a lawyer. For most legal cases such as divorce, real estate or criminal, you fare better with a lawyer. If none of these apply, you still might need a lawyer for a professional opinion on financial or business matters.

You should not choose the first affordable lawyer you find in the local yellow pages. Rather, you need to do adequate research so that you end up with the best possible candidate. I went with a referral from my realtor, but that lawyer turned out to have been disbarred for malpractice. Therefore, you need to be cautious.

Ask all lawyers that you visit for proof that they have won cases like the one you are fighting. Look up cases that he has won or lost, rather than just taking his word that he is excels in the field you need help in. You can find this information on the Internet with a little digging. The lawyer should willingly provide it, as well.

Look into an attorney’s background. When you call your state bar association and any review resources you can find for lawyers on the Internet, you can find out whether you want to hire a lawyer. It will save you cash, time and stress.

Before you hire a lawyer, check with your state bar association for complaints or problems. A couple of complaints should not scare you as long as it is not anything serious, but you should find another lawyer if you find a lot of complaints.

Look into using a lawyer referral service. They help you find the best lawyers. Some screen the lawyers on their list based on experience and proof of qualifications. There are those that list good lawyers based upon whether or not a lawyer maintains liability insurance per state bar standards. See what their qualifications are first to find the referral service for you.

See how friendly the people are in the lawyer’s office. Note how quickly they respond to your calls. Does the worker at the desk treat you with respect? If the office takes a long time returning your messages, that may give you a hint of how you’ll be treated when you are actually a client.

Since you are now more knowledgeable about choosing a lawyer, it will be much easier find the lawyer you need. Remember this advice as you seek out and select an attorney to represent you. Now go out there and hire a lawyer you can be happy with.…

Find The Right Lawyer For Your Needs Today

When you have legal troubles, you need a lawyer with experience, who is competent and honest. But, you may be unsure of what you ought to be looking for in a lawyer. Keep reading to learn how you can find the best lawyer available.

Make sure you identify your problems and concerns before looking for a lawyer. Determine whether or not you really need 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. While your case may not fall into any of these fields, you may still need a lawyer.

If you search for the word “lawyer” in your area on the Internet the results can be overwhelming. You need to thoroughly research your options so that you obtain the best lawyer. You might get some bad surprises if you base your choice only on a recommendation from someone you know. It is always better to be safe than sorry.

Your lawyer and you should think up a time that you can meet so you’re able to touch base. You do not want to be kept in the dark about what is going on with your case. You may be able to avoid this if you come up with a schedule soon after you hire your attorney.

Remember that you are in charge; however, you must pay attention to the information your lawyer shares. That’s what you’re paying for. If you are uncomfortable about something, you should not hesitate to say so. Although your lawyer is representing you, they also have many clients.

Before researching lawyers by yourself, talk to others. They may have hired someone who did a great job for them. This can be very beneficial and also take the work off of you.

Don’t hesitate when you have a question for your lawyer. A lawyer of a high caliber will be more than willing to talk to you regarding any concerns that you may have. If your lawyer keeps you in the dark and won’t explain how your case is going, it might be time to drop him like a bad habit.

Do not hire any lawyer that makes you feel uncomfortable. If you do not like the way the lawyer will bill you, move on. Stay away from signing over blank checks to lawyers, especially ones you do not know well. Be sure to get a solid estimate at the outset to prevent the situation snowballing beyond your ability to pay.

Keep good records of when you interact with your lawyer. Write down any pertinent information like date and time, what was said, and how much the session will cost. This log can assist you in handling potential problems down the road, such as large fees you aren’t familiar with.

These tips should give a firm grounding in what to look out for in a lawyer. Picking a lawyer is not something that should be taken lightly. Remember this advice when meeting with lawyers. These tips can help you find the best attorney for your case so that you can get the outcome you desire.…