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

What Everyone Needs To Understand About Lawyers

Selecting a lawyer is not always easy. Many people find themselves confused as to what type of lawyer to choose for the issues they are facing. Each legal dilemma that occurs is not the same as the next one, and you need the right lawyer who has the experience for your situation. Continue reading to learn what you need to know.

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.

Look for reviews on local lawyers online. Finding a lawyer that you can trust and respect can be very difficult, so any advice that you can get can be very helpful. Make sure the reviews you consider are on an independent site and take all comments with a grain of salt. The goal is to find the general consensus.

You need to know what your legal budget is before you hire a lawyer. You have to include in this the time spent away from work, if you don’t get paid for it, to ensure you have enough to pay your bills. Include travel costs, phone bills and other expenses which might come along.

If you have been charged with a crime, are in an accident or think you need legal help, you need to hire a lawyer. The amount of time that you wait to make this decision can be a critical factor. You want to have someone on your side that knows the law as quickly as possible.

Use only lawyers you feel are trustworthy. This goes double if you are looking for a lawyer to help with your business. Retainer fees and signing blank checks are common requests of lawyers there. You must be able to trust them with your wallet. Keep yourself protected.

Local bar associations keep track of complaints against their members so always check with them for information about potential lawyers. One or two small complaints should not influence your opinion; however, if they have multiple complaints, you need to find another lawyer.

Often, lawyers are specialized in a specific area of the law. If you need a lawyer, make sure you find one that can help you in the exact area that you need. Do not try to hire a personal injury lawyer to help you with your bankruptcy. Even if you are referred by a friend, if the lawyer is not specialized in the area of law you need, then keep looking.

While this article previously mentioned that choosing a lawyer is not always easy, you should know understand that a little knowledge about lawyers does make it easier. You may find yourself needing a lawyer more than once in life, and that can mean that you may need to use several different lawyers. Each will help you to get through any tough times.

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Make Finding A Lawyer Easy With These Tips

Estate planning takes a very special kind of attorney, one who knows the financial markets and trends, as well as how they apply to your particular situation. Though it can be tempting to draw up your own plans and goals, you would be wise to have a legal consultant to guide you along the way. Read here about what to look for in a good estate attorney.

Learn about your lawyer’s past before you hire him. A lawyer may have his or her own practice, but this does not always equal success. Be sure that you find out what his track record is like so you can feel confident of his ability to do a good job for you.

Ask for a free consultation. Many lawyers will offer a free consultation, so you can have your questions answered. During the consultation, you can also see if you are comfortable with that lawyer. Always go to more than one free consultation so you have a good mix of lawyers to choose from.

Make sure to find out who all will be involved with helping to work on your case. What sort of experience do they have? Some may have years of experience, whereas others may be fresh out of law school. How much time is your lawyer anticipating on devoting to your case?

If you go to see a lawyer for any legal reason and they tell you that your case will be simple, you should not hire them. Most legal cases have a lot of things involved with them, so it is not very likely that many cases can be that easy.

A lawyer who specializes in a specific issue will be an advantage for you. Specialized lawyers can be more expensive but these lawyers have extensive experience with cases like yours. You should avoid lawyers who spend most of their revenue on promoting their services and rely on their good reputation and results instead.

Make sure the lawyer you are hiring is suited for your needs. Like medical professionals, lawyers can be general practitioners or dedicated specialists. Know what general legal area your case is in, and narrow your search for a lawyer within that specialization to find someone with focused training and experience.

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.

Stay away from lawyers who promise you an easy victory in court. Very few cases are absolutely indisputable and a lawyer who seems overconfident might be lying to you. Do not hesitate to meet with different lawyers to ask for advice before you hire one and do some research on the reputation of these lawyers before you hire one.

Now that you understand more about how estate planning works and how an attorney can help, you can move forward with a well-informed plan. Seek referrals, do your research and get your new attorney on board as soon as you can.It is never too late to plan your future.…

Don’t Hire An Attorney Without Reading This First!

Do you have to go to court? If so, then you should understand that being prepared is the key to success. This includes finding and working with the best lawyer for your needs. Read the below article for some helpful tips on locating great lawyers to ensure that you win your case.

Anyone accused committing any kind of serious crime will need a lawyer. Trying to handle everything yourself can leave you in a compromising situation. A lawyer can handle this situation better due to experience and knowledge.

When you are hiring a lawyer, make sure that there is a discussion about the payment plan that you want to instill. Sometimes, you may not have all of the money upfront, so you will want to workout a monthly plan that suits you comfortably. Get this done ahead of time so you don’t have to worry about it later.

Avoid selecting the first lawyer you find in the phone book. Do some background research and ask people you know for recommendations. I took the lawyer my real estate agent offered me when buying my first home, and it turned out she’d lost her license for malpractice! Be cautious!

Before you hire a lawyer, see if you can resolve any dispute without one. Often people are able to resolve their problems without having to find a lawyer. If you are not able to solve your problem without a lawyer, then it is in your best interest to have a lawyer on your side.

Go with a specialist when you really need one. If you are in a jam, and it’s regarding something very specific a general practitioner may not have the know how to help you in the way that you deserve! Yes, a specialist may be more money, but your chances will be much better with the expertise that’s brought to the table.

Understand your spending limits. Although you may be extremely confident you will win, you can’t know for certain whether you will or not. Also, even if you did win, how much will it cost you? Find out how much your lawyer prospects charge. Discuss your budget and the things you need to have accomplished within that budget. It is important to understand what the average cost of your case should be and what may affect your costs.

Make sure you understand the costs associated with a particular lawyer ahead of time. Before you even begin the process of seeking someone out, you need to think about what you can afford. As you call different lawyers, discuss fees and the payment schedule. Do not be surprised later on!

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.

As you can see, the importance of finding the right lawyer is crucial for your success in court. Do not settle for mediocrity, especially when it comes to court. Arm yourself with the best lawyer that you can. Now that you have read this article, you should be able to do this. Good luck!…

Excellent Advice About Personal Injury That You Will Want To Read

Lawsuits are common occurrences nowadays. If you wish to pursue a personal injury suit, don’t decide on it lightly. Do not be afraid of the legal system if you have a legitimate reason to seek a compensation. This article has some very useful information. With this advice, you should be able to achieve a positive income in your case.

Online reviews can be very helpful when you are looking for a lawyer. Don’t just choose the lawyer on the television ad. They are not always the best choice since you need to read actual experiences.

Having a preexisting condition does not automatically negate a personal injury claim. Be open with your lawyer about all of this when you speak to him. You don’t want him to be blindsided in court.

Before choosing a lawyer, find out how big their office is. If you have a big lawsuit, you need a big firm to support you. If it is a more minor case, however, you do want to spend the amount of money a larger firm will require.

Keep all the documents linked to your personal injury, including medical bills. These should include any notes from doctors, payment receipts and instructions for care. Also, save email copies from your doctor about your injuries.

Paying a lawyer is investing in your case, so make sure you are treated respectfully, as an investor should be. If you are dealing with lack of respect or lack of time to fully explain your case and ask questions, move on to someone else. Additionally, if you are unable to reach the attorney, it may be time to find a new one.

For a personal injury case, only hire lawyers who are experienced in personal injury! While this may seem obvious, many people assume all lawyers are the same. Law is usually very complicated, and personal injury law is no exception. You want a professional who knows this area inside and out. Without the right lawyer, you are less likely to achieve the desired results.

When it is time for your free consultation with an attorney, bring copies of any important documents pertaining to your case. This may include insurance company correspondence, police reports, medical records and bills. These documents can assist your lawyer, so he can determine whether he can take you on.

Get the contact information and name of everyone who saw your accident. The court proceeding may take some time, so your lawyer needs valid statements, as soon as possible, so that they can adequately prepare. Phone numbers allow you to stay in contact with witnesses if they move, and quick statements are more likely to be accurate.

When looking for a good personal injury lawyer, check the location of the law office. Choose an attorney who is located near you. By having a local lawyer, you can easily get in touch with them. You will be able to go to their office easily in case your lawyer does not return emails or phone calls.

If you have decided to proceed with a personal injury suit, you’ve got a long road ahead of you. For that reason, you can find help in this article. Start by finding a good lawyer and gathering the evidence you can use to document your personal injury.…

Find The Best Legal Assistance In Personal Injury

How should a personal injury suit be handled? The very thought of it can be extremely confusing and overwhelming. The advice in this article has come from experts in the field just to help you. The advice here will ensure you a victory.

Be sure you clearly document your injuries in thorough detail after you have been hurt. Be sure to note cuts, scrapes, bruises, broken bones and so on. Remember to take note of any bruises, bumps and other symptoms that may appear as time passes. Additionally, if you seem to be stressed after an accident, you may be suffering from post traumatic stress syndrome.

As you seek potential representation for your personal injury matter, take the time to seek personal recommendations from friends and family who have been in situations similar to yours. This will help you find a lawyer worthy of your case. You need the best attorney that money can buy.

Do a thorough search online to find a great personal injury lawyer. This will provide you with a good amount of information to leverage off of when you are making your decision. To get the outcome you want, be sure the lawyer you pick is experienced and has past success with cases similar to yours.

Some sleazy lawyers use flashy and loud ads to pull people in, and that’s why you want to avoid them, even if they seem tempting. You can’t really tell how honest a lawyer is by viewing an advertisement. Rely on face-to-face meetings before deciding.

Exercise caution whenever you deal with an insurance carrier. Be careful when you deal with the inevitable insurance company while managing your claim. The purpose of these businesses is to have the matter solved as fast as possible. Before you accept any insurance settlement, you may want to at least consult with a lawyer.

Pose all of the questions you have at your initial consultation. No question is out of bounds – whether it be on anticipated costs, expected trial length or questions about outcomes achieved by previous clients. You will be more comfortable if you ask questions.

You want to hire a lawyer who specializes in personal injury to handle your case. Do not hire a lawyer who does not specialize in these type of cases. You need to find someone who knows this side of the law and who has experienced trials specific to personal injury. If you don’t, you could be at a disadvantage.

After a car accident, you should never move your vehicle until a police officer informs you to. This can sometimes make damage worse, and reduce the liability of the other involved party. You should only move your vehicle if it is blocking traffic.

You have learned now about the procedure for getting help with your claims. This means that you should use all this information wisely in order to reach that goal. So it’s important that you focus on every tip listed, using the information to guide you through the process. By doing so, your personal injury case is more likely to be successful.…

Facing Legal Issues? Learn Great Tips Here

Just because a lawyer has spent numerous years to earn a degree from a good college does not mean they are fit for your needs. In this article, we will share information to help you find just the right lawyer. You will be glad you did.

Ask for a fee schedule from any lawyer you’re considering. The fees will vary depending on a lawyer’s background, and it is smart to be aware of what you are going to pay before you retain him. You don’t want to find out how much you will be paying once it is too late.

Remember that your lawyer is there to work for you, but listen to their advice. You can speak up about a situation if it makes you feel uncomfortable. Your lawyer will always have your best interests in mind, but you are one of many cases that they have.

Keep a log of every interaction you have with your lawyer. Jot down what you spoke about, what the date and time was and whatever you discussed about payments or bills. This log can assist you in handling potential problems down the road, such as large fees you aren’t familiar with.

Only deal with lawyers that you trust. Particularly if the matter has to do with your business, you need the person to be honest with you. Many business lawyers want huge retainer fees and to be able to spend your money without limit. You must be able to trust them with your wallet. Protect yourself in all ways.

You should always agree on fees and put them in writing before the case starts. This will keep you on the same page about the costs, and let you worry about the case. Legal issues often have unseen expenses, such as lost work or stress. Develop a budget. It is a good time to get all financial and personal matters in order.

When seeking an attorney, make sure they practice the kind of law that pertains to your case. You should be able to find lawyers specialized in divorces, bankruptcy, real estate law or many other things. Knowing this beforehand and researching your options can help save you much time later.

You should feel entirely comfortable with the lawyer who takes your case. Good lawyers aren’t just knowledgeable and intelligent, but they have good people skills and can make you feel comfortable upon entering their office. If this isn’t the case, find a new lawyer.

You need to have a smooth working relationship with your attorney, so it’s important that you get along well. Do not expect to develop a good relationship if your lawyer does not really make you feel comfortable. Be certain you trust your own instincts and choose an attorney whose personality works well with your personality.

As this article said earlier, you will find that all lawyers cannot meet certain needs. However, learning about the different types of lawyers and legal issues will help you make a wise choice. Think about the things shared here with you carefully, and good luck!…