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 Steps You Need To Find A Good Lawyer

These days, people need the assistance of lawyers for countless different reasons. When it comes to finding the right lawyer for your cause, things can get a bit tricky. Not many people understand what qualities to look for when hiring a lawyer, particularly if they have never done it before. Read the following article and learn some key tips that will help you choose your next lawyer.

When it comes to hiring a lawyer, trust is an essential part of the relationship that you want to build. You will want a lawyer that you can feel comfortable with and who seems very capable of handling your case. This may take some time to find, so look carefully!

If your case is of criminal nature, then you need to immediately get in contact with and hire a lawyer. Be sure that you’re not trying to take on the case yourself, because you could end up being convicted of a crime. Only a lawyer is qualified to handle the details and nuances of your case.

Try to educate yourself on what you are dealing with. You should not be relying solely on the lawyer to plan and construct your case. Obviously, they will have more knowledge and experience dealing with your situation, but if you are prepared, you can work together as a team to get the win.

You should establish a budget before you start looking for a lawyer. Go over your finances and assess how much you can afford to spend on a lawyer. You should not let lawyers know about your budget when you ask for quotes but this is a good way to narrow down your research.

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.

Keep good records of when you interact with your lawyer. You should keep track of specifics such as date and time. Note topics discussed and money paid. Keep tabs on your legal bill. 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.

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.

Prior to agreeing to work with an attorney, you should ask the lawyer to disclose all fees upfront. It is a good idea to sign an agreement on fess, especially if the lawyer is working below his or her standard rate. This will keep you on the same page about the costs, and let you worry about the case. It will also enable you to arrange your finances so you can make the appropriate payments when needed.

As mentioned earlier, people need lawyers for all sorts of different reasons. You may find it a bit overwhelming trying to decide which lawyer to hire. However, if you implement the tips mentioned in the article above, you are sure to find a good lawyer that you can count on.…

Below Is The Best Place For Special Tips About Personal Injury

If you’re facing a personal injury case, you’re going to want to know everything you need to in order to win. You need to know a little about personal injury law yourself, and you need to have the right personal injury lawyer for your needs. Continue reading to learn more about how you can do this.

Never let anyone that is at fault for your injury convince you that you should take a payout without contacting an attorney. The amount they offer may sound fair, but they is no real way to be sure of that without contacting someone that knows exactly how much your damages are worth.

If you are considering hiring an attorney, set up a consultation first. Generally, this consultation should be free, but make sure you clarify this point before you head into the meeting. If a fee is involved, it is likely that lawyer will charge other fees as well, like a retainer, and you may want to move on as a result.

Although personal injury lawyers advertise in the yellow pages, the better way to find a good lawyer is through word of mouth. If you don’t know anyone who has used a personal injury lawyer, check with the local bar association. They may be able to point you in the right direction.

Always go to the hospital if your injury may be the fault of someone else. If you do not fully document your injury as soon as you can you put yourself at risk for not getting the money that you may deserve in a settlement. So, if you want to protect yourself, be sure to visit a doctor right away.

Never commit to a personal injury lawyer until you have the breakdown of your fees in place. If you are short on money at the time, speak with your lawyer to determine if a payment plan can be set up so that you do not face additional stress after your case.

Don’t be afraid to question your personal injury attorney. For instance, understanding their education background is important. If they have been out of school for a while, also ask about their efforts to continue their education. Have they attended any conferences or seminars? Have they completed online work? You want the person you work with to have fresh, current information about personal injury law.

If your case involves an insurance company, ask the lawyer if he has experience dealing with insurance company negotiations. If the attorney does not have ample experience, it is in your best interest to look for a different attorney. Most insurance companies hire a group of lawyers to represent them in these type cases; therefore, it is important that you have an attorney with experience in these types of negotiations.

Hopefully, this article has given you a good idea as to how to approach a personal injury case. Keep the advice that has been discussed here in mind as you go about building your case after finding the right personal injury lawyer. You will have a much better chance of winning your case.…

Tips For Successfully Dealing With Lawyers

You may have friends and coworkers who speak about their attorney as if it were perfectly normal to have one. Though the costs of hiring a lawyer are prohibitive to the average person, there are actually ways to have legal representatives on retainer for a fraction of the cost of hiring one in an emergency. Read here about how to find these attorneys and how to establish the relationship.

If accused of committing a grave crime, the number one thing for you to do is hire an attorney. Don’t try to handle it yourself, since you may be put in a position where the law may be broken. Lawyers are specially trained for cases like yours, so do not hesitate to trust them.

A good tip to keep in mind when thinking about hiring a lawyer is to write down several questions that you wish to ask him or her. You want to find out what their philosophy is and so on, and asking questions will help give you a clear idea about them.

Before you hire a lawyer, sit down and define the problem that you have. Sometimes, you may find that your situation is not bad enough to warrant a lawyer. Understanding exactly what you are going through can help save you a lot of money over time with a lawyer and court fees.

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.

Never hesitate to ask your lawyer about any part of the fees you do not understand. There are many people that have issues with the fees they are charged by an attorney, but many of them do not say anything. There is a chance that you can do some of the work yourself and save a little, so make sure to ask about that.

Define your case before seeing a lawyer. The first thing to do is think about whether you really need a lawyer or not. Lawyers are not only there to represent you in court, they also can give you advice about legal matters such as contracts. Maybe you need a lawyer to deal with an estate. Maybe you just need a lawyer’s advice about a business matter, or something personal. Find the right lawyer to talk to.

Lawyers that specialize in their fields are not cheap, but they may save you a lot of agony in the long run. The truth is that general practitioners will have to do lots more research than a specialist, which ends up costing you lots of money.

Even if you have not been in trouble or had legal needs before, you now realize that it could happen at any time. Even for routine legal paperwork or getting advice about transactions, it always helps to have professional legal oversight. Take what you have learned here and put it to use in finding the legal help tht you may need.…

Basic Tips And Tricks To Help You Hire And Deal With An Attorney

If you’ve found yourself searching for a lawyer, you want to make sure that you find the right one. You don’t want to waste your time, and you don’t want to end up losing your case. Instead, you want positive results, and for this you need the best lawyer for the job.

Ask for a fee schedule from every attorney you are interviewing. Fees are going to differ quite a bit depending on that lawyer’s experience and demand. This means that you must know what the fees will be prior to paying them. Nothing is worse than losing a lawyer in the middle of your case.

Do not hire a lawyer who establishes the first contact. This is likely to be some sort of scam, particularly if you are dealing with an expensive issue. Therefore, take the time to hire a great lawyer who will be happy to serve you, but is not desperate.

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.

Speak to loved ones ahead of searching out a lawyer. Speaking to family, friends, acquaintances, etc., you might can obtain excellent lawyer suggestions that are a good fit for you. This can save you a lot of hassle in the long run and expedite the hiring process.

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.

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.

If a lawyer tries too hard to convince you that your case is easy to win or that you can make a fortune by filing a lawsuit, you should not hire them. A good lawyer should be honest and carefully assess your situation before encouraging you to file a lawsuit.

Do you feel like you can find the lawyer that is going to help you win your case now? It’s important that you utilize the tips and advice you’ve learned here so that you can better make the right decision involving your needs. You want to feel like you have the best possible person on your side.…

Don’t Be Outsmarted By Your Lawyer! Get These Tips Down!

These days people hire lawyers for a whole host of different reasons. Lawyers help us navigate through any legal issues we have. However, when it comes time to pay them, many are shocked at how much money they now owe. The following article will help explain a typical fee structure so that you won’t be caught off guard.

Find out all that you can about lawyers that you are interested in. What sorts of legal organizations do they belong to, for example? Bar organizations often help to keep their members informed of the very lastest in legal news. You want a lawyer who stays abreast of current legal trends!

Always know how to get a hold of your lawyer should you need him. Many people find that the attorney they hire is unresponsive. While lawyers typically need to handle more than one case at a time, you should not have to to wait days, while being left in the dark due to your lawyer spending too much time golfing.

Think of what your problem really is before looking for a lawyer. Determine whether or not you really need a lawyer. There are many reasons why you might need one. Even if your need is not related to these subjects, you may still require an attorney’s assistance about a financial or business matter.

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.

Don’t just pick the first lawyer you find on the Internet. It is tempting to think lawyers all do the same thing, but they can vary in quality and expertise. Ask friends if they know a good lawyer and what he represented them for. Be picky when choosing legal help.

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.

Keep in mind that you will end up paying a lawyer for more than just the time they spend on your case. If applicable to your case, you may have to pay them for phone costs, traveling costs, and even costs to make copies. Take this into consideration when making a financial plan.

Unfortunately, lawyers are a necessary evil in today’s society. They are costly, and often put a lot of extra stress in your life. However, if you read through the advice mentioned in the article above, you can better understand how their fee structure works so that you can prepare yourself when it comes time to pay up.…

Looking For A Lawyer? Read These Tips!

Although we tend to hold attorneys in high esteem as careers go in our society, few of us know what they really do. It’s not until we end up embedded in legal proceedings that we realize how complicated the world of law can be! If you need legal advice, the following article will get you started in the right direction.

When it comes to hiring a lawyer, trust is an essential part of the relationship that you want to build. You will want a lawyer that you can feel comfortable with and who seems very capable of handling your case. This may take some time to find, so look carefully!

When picking a lawyer, keep in mind that most lawyer are specialists in a certain area of the law. You may think this makes the lawyer more expensive, but it may save you money. If you get a good lawyer and they win, you can save a lot of money.

It is important to think about the specialty of a lawyer your are hiring. You want to make sure you hire the lawyer you need. You do not want to hire a lawyer that specializes in criminal law to do your estate planning. Choosing a lawyer that specializes in whatever area of law you need, will guarantee you get someone who has a lot of experience in that area and can do a good job.

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.

Do not make the mistake of believing that an older lawyer automatically knows more than a lawyer that is a bit younger. Someone may have been in practice longer, but that does not mean that they automatically have experience in the area of law that pertains to your case.

Don’t give an attorney a large sum of money up front. If the lawyer requires a certain retainer to take your case, you must be sure that you will be refunded any amount not used. You need to think about asking around because some lawyers will take smaller retainers and will later charge you whatever else they need.

Look for people who have experienced similar problems and ask them which lawyers they used. Your friends and relatives might be helpful but do not follow their suggestions unless you need a lawyer for the same kind of issues. Use the different resources available in your community, such as support groups.

Following the advice of a qualified attorney is your best way to navigate through legal proceedings. Once you realize how exclusive the jargon is and how complicated the endless regulations are, you will be very glad you’ve got a great lawyer on your team. Give yourself a fighting chance with legal matters and hire the right attorney.…