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.…

A Helpful Guide To Personal Injury Law

It’s impossible to predict the outcome of every case, but you are more likely to see favorable results when you enlist the help of an excellent, experienced lawyer. You have to read this article right away. Your case means too much for you to be taking chances.

Find the best personal injury lawyers through the web. This will provide you with a good amount of information to leverage off of when you are making your decision. For the best results, look for a lawyer that has experience and a good track record.

Discover how large the firm is before making a choice of a lawyer. If you have to deal with a large lawsuit, you need to have a large firm representing you. But, if your matter requires more personal attention, a smaller, more affordable firm may be a better choice.

Take a second to ask your friends and family about any recommendations that they might have. Personal injury lawyers come in all shapes, sizes, and varieties: you might need a trusted friend’s opinion to find the right one for you. Make sure it’s someone you know is trustworthy and has no financial motivations.

Many questionable lawyers abuse flashy advertisements to pull in large crowds which is why you should avoid them at all costs; no matter how tempting they might be. You should never rely on advertisements when finding a lawyer. Personal meetings are essential to making a good decision.

Document your costs. Record any expenses or loss of income you incur as a result of your injury. Some of these documents may include insurance forms, medical bills, prescription receipts, and property damage repairs. If you miss work because of the injury, be sure you also document any lost wages. Document each expense as it occurs, while it is fresh in your memory.

Speak with a bar association to determine the lawyers that are in your area that practice what you need. This will not provide you a ranking of the best lawyers, but will give you a good start on finding one. The American Bar Association is a good place for you to start this process.

Find out about a prospective personal injury lawyer’s experience. You need to ask any lawyers you’re considering some questions about their experience just like you’re interviewing them. You should find out how long they’ve been practicing, how many of their cases were personal injury cases, if they usually represent defendants or plaintiffs, and if they’ll handle your case personally or hand it off to another lawyer in their firm.

Choosing a local lawyer is your best bet for many reasons, but the most important is that they have to be accountable to you. You will be able to literally go into their office if you need to get their attention. This is impossible over email, Skype or on the phone.

There is more to winning your case than hiring the best attorney, but it certainly improves your chances. Adhere to these guidelines and any other recommendations made by your attorney. You might find it tedious at first, but it’s all going to be worth it at the end.…

Lawyer Advice For Those Just Starting Out

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.

Make sure that your lawyer puts everything out on the table in regards to your options available. When going into a lawsuit, you will want to know all of the options that you have and if there is a plea bargain available. This will not only help you get the best result, but will ease your peace of mind.

Do not hire a lawyer until you know more about their experience and their results. A young lawyer might be more affordable but you will definitely benefit from hiring a more experienced and more successful lawyer. If possible, try finding a lawyer who has positive experience with very similar cases.

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.

Ask everyone you know if they’ve used a lawyer for a legal situation such as yours, and who they might recommend. Don’t forget to collect references for the lawyers on your short list and check them out. Also conduct a background check and Google them to see what others say about their services.

It is hugely important that you know exactly what your lawyer plans to do for you. They should lay it out in writing, preferably, before you sign on the dotted line. If they get you to sign a legal document they have drafted without explaining it, run the other way.

If your lawyer does or says anything you don’t understand, speak up. They should be more than happy to explain anything to you, from what a fee is for to a document they’re having you sign. If your lawyer doesn’t want to talk about anything related to your case, drop them immediately.

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.

Find out as much as you you can about a lawyer’s reputation when you are making a selection. Look for reviews online and contact your local bar association to find out more about the lawyers you are interested in. This can save you a good deal of money, time and stress.

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.…

Find The Right Legal Help For Your Personal Injury Battle

Getting injured can be anything from a minor annoyance to something debilitating that causes you to be laid up in the hospital. The person responsible for injuring your should be held responsible. This is often done willingly, but at times it can be a fight. In this article, we will discuss some excellent tips to help you through your personal injury lawsuit.

Filing a personal injury suit is a challenging, often protracted experience. This means you should select the most experienced attorney possible to present your case. Seek out a person that has a lot of experience in winning these kinds of cases so that you’re sure you’re getting your case handled correctly.

You may have a pre-existing condition; however, you are still eligible to receive compensation for accidents you might have had. Be honest about your prior injuries when you speak to your attorney. You won’t want it to come out in court.

With regards to hiring a personal injury attorney, you must meet with multiple lawyers prior to selecting one. The first consultation is often free. At these consultations, you can ask about costs and figure out if they are someone that overcharges or adds extra fees.

Look into the firm’s size prior to deciding on your lawyer. If you have a substantial claim, you will need a larger firm. When your case is small, a small firm is fine.

Make sure you document your personal injury to prepare for legal action by taking plenty of pictures from every angle possible. If you lack the ability to take photos, maybe a relative or friend could do so. Photos should be taken as soon after your accident as possible. This will give a more accurate picture of events.

Lots of shady lawyers have catchy ads meant to suck in clients, and this is why it is important to stay away from them. Such practitioners do not always have the best reputation, and their sincerity may be in doubt. Set up an initial consultation to go over your case in detail.

When working with an insurance company, always proceed with caution. You will probably deal with one or more insurers in the course of your case, so use caution. Remember that the company’s goal is to settle fast and for a limited amount of money. You may think about getting advice from a lawyer prior to accepting what an insurance agency is offering you.

If you are involved in an accident, don’t apologize. Keep your mouth shut and wait for the police. Apologizing means you recognize you caused the accident. It doesn’t matter if you think you’re wrong, say nothing.

You must know what policies are held by the defendant in a personal injury suit. Your claim may go against multiple policies. If they don’t want to provide the information you need, you can get an affidavit that will make them.

Suffering a debilitating injury can have a huge negative impact on your life, especially if the injury was not an accident. The tips here should make things a bit easier for you. The actions of someone else should not cause you financial or mental hardship. You are entitled to compensation.…

Facing A Legal Problem? A Good Attorney Can Help You

Lawyers get a bad rap, but we actually need them very much. In order for law to be maintained, society needs lawyers to help things run smoothly. Finding the right lawyer can really make all of the difference in the world. Use this advice to find just the right lawyer.

If you’re accused of a type of serious crime, hire a lawyer right away. Never try and do anything on your own as you may end up breaking the law. Attorneys have the necessary experience to handle any issue that may arise.

Find a lawyer who will accept a retainer from you, if something bad were to happen. This will ensure that you’re not pressured into taking the first lawyer that comes along, you will already have an established relationship to rely on. Having a lawyer on retainer also means that you will have expert advice on hand should you need it.

Whenever you’re dealing with real estate legal issues, hire a lawyer who only does real estate. You will get better results if you hire a lawyer who has significant experience with related cases.

You shouldn’t just hire the first lawyer you come across. You must put in the research in order to get the best choice. Take any recommendations with a grain of salt; is the person offering the advice truly qualified to make a good recommendation? Therefore, you need to be cautious.

You must let your lawyer know your communication expectations. Often an attorney will not contact their client for a long time after being hired. To avoid this kind of problem, develop a schedule in advance.

Figure out what the budget you’ll follow will be. Even if you feel fairly confident that your case will prevail, you still need to consider the cost involved. Research the types of fees you will absorb if you choose a certain attorney. Discuss your budget and the things you need to have accomplished within that budget. Understand what cost overruns are potentially there.

Find a trustworthy attorney. Lawyers are handling important documents for you, so you want to trust that they are going to do a good job. Signing blank checks or paying a retainer fee is something a lot of lawyers request. They will be in control of your monetary fate. Be sure to cover yourself the best you possibly can.

Before you agree to hire a lawyer, sign an agreement with him or her regarding fees. This is wise, because you will not have any lingering concerns or questions about billing, and can instead stay focused on the case. Additionally, it will allow you to budget for this expense.

Comfort and confidence are the two biggest factors in choosing a lawyer. Not only will an excellent lawyer know what they are doing, but they will also make you feel comfortable. Get a new lawyer if the one you are now using doesn’t do this.

There are many variables you must consider as you look for an attorney. Remember these tips so that you’ll be able to make the best selection possible. With the assistance of a good lawyer, you can end up on the winning side every time.…

Essential Factors To Consider When Finding A Lawyer

Do you need some legal assistance? It doesn’t matter why you need them, finding one can be hard. However, if you implement the advice given in this article, you are sure to hire a trustworthy lawyer without spending too much money. Continue reading to learn how.

Arm yourself with a lengthy list of questions to ask prospective lawyers. When you’re in your initial consultation, a lawyer should be able to answer all your questions, whether they’re big or small. They need to make you feel comfortable. If not, this is not the right attorney for you and you should walk away.

If you need a lawyer, you should choose one you can easily communicate with. Be certain your lawyer has all necessary documentation to meet required deadlines on your case. This can significantly help the chances of your case.

Having a lawyer who is wrapped up in tons of other cases can cause your case to not get the attention it deserves. To make sure your attorney has time to properly handle your case ask them up front. Most lawyers will be honest if they can’t take your case, so if that happens, just look for someone else.

There are several online services that will help you find a good lawyer, however don’t assume this is the only research you need to do. No matter how you come across your lawyer, you must take the time to research each lawyer you’re interested in, prior to hiring them.

Finding an attorney that you get along with makes the process easier. No matter how much experience and expertise the lawyer has, you’re not going to work well together if you don’t hit it off in your first few sessions together. Find a lawyer you get along with well so things go smoothly.

Stay away from lawyers who seem overly confident about their ability to win your case in no time. If your lawyer says this, then you need a different lawyer. The law is always tricky, and you need a lawyer who is going to consider all facets and look for any issues. It is important that you make a wise choice.

Do some research before taking care of the Worker’s Compensation paperwork. All the states vary with their paperwork and filing deadlines. For instance, Worker’s Compensation shouldn’t be approached like other claims. It has different rules that must be followed.

A useful tip to remember if you have doubts is that you can always get another opinion. It can be quite costly to leave one lawyer for another, so that may not be a good solution. Another opinion is smart before you make new decisions.

Ask the attorney about his education. While this information should not be your only consideration, it is likely important. If your lawyer went to a good school, the coursework was probably challenging. This means the lawyer knows how to work hard. A great lawyer may graduate from a school that is mediocre, but this information should play into your decision about which attorney to hire.

It doesn’t matter why you require lawyer, just that you know how it’s done. Make use of the excellent suggestions provided to you above, and your lawyer search is certain to be much less stressful. You need the best help you can, so that your case doesn’t go down the tubes.…