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

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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.

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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.

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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.

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From marriage contracts and divorces to troubles with an employer or starting a new business, many people find that there are many times in life when they will need a lawyer. But you need to know how to choose the right type of lawyer for whatever your situation may be. Continue reading to learn what you need to know about lawyers.

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!

A good tip if you’re looking to hire a lawyer is to try to find the right lawyer for the task you need. If you’re simply wanting to draw up a contract, hiring a big shot, corporate lawyer is probably overkill and is just going to cost you a lot more.

Know any fees and costs before signing anything. Remember, it’s your job to ask questions in regard to the costs. Ask every question you can think of, and look through every document you are given. Your lawyer is not responsible for you being quick on the draw when it comes to signing official paperwork.

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You will be able to save some money and time if you’re ready with information, as well as paperwork, prior to having a consultation. The lawyer will be able to provide you with a better estimate if they have all the information available. The more detail oriented and efficient you can be, the cheaper you can get your legal issues resolved.

Use the Internet prior to choosing an attorney. Not only can you find attorney listings and backgrounds, but you can find a lot of legal help. Legal-focused forums exist that can give you background information about your matter and guide you to the right specialists. Simple legal matters, like making a will, can sometimes also be handled through legal websites.

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Get a fee list from every lawyer you interview. The fees can range greatly based on the lawyer’s demand and experience and it is best to know what you will be paying before you agree to use him. Nothing is worse to a case than losing representation after a court case has begun.

It is best to hire a real estate lawyer if you are dealing with issues related to a home you are selling or buying. This will make sure that your case will have the best chance to win.

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A lawyer referral service could be exactly what you need. You can find quality lawyers by utilizing these services. The quality of the screening service varies since some list only attorneys with specific qualifications and a minimum amount of experience. Others list any favorable lawyer by the state bar’s standards that keeps liability insurance. Check into their qualifications before choosing a referral service.

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If someone else has caused you injury, you may need an attorney. Personal injury law isn’t simple, and you don’t want to wait when preparing your case. Use the information found here to help you through your personal injury case.

You still deserve compensation for accidents, even if you have a preexisting condition. Just make sure you are honest with your representation about past injuries. Do not ask for a settlement that exceeds the impact of the personal injuries the other party can be held responsible for.

Your lawyer works for you, so it is important that they treat you with respect and address any questions or concerns you may have. If you feel uncomfortable or taken advantage of in ways, consider moving on to another lawyer. Not only that, but if you can’t reach the lawyer, you need a new one.

When getting an attorney, sign a retainer agreement. This will ensure that both parties are fully aware of what is expected and should lay out any and all fees in great detail. Set up some payment schedules using this agreement and a procedure on how to end the client-attorney agreement if it does not seem to be working.

For a personal injury case, only hire lawyers who are experienced in personal injury! This may sound obvious, but many people think a lawyer is a lawyer. Law is usually very complicated, and personal injury law is no exception. You want a professional who knows this area inside and out. If you don’t, you may be shooting yourself in the foot.

After an accident, don’t move your car unless the police tell you to. This might lead to greater damage and can make the opposing party become less liable. The only time this does not apply is if the accident occurs on a busy street or highway.

When representing yourself in a personal injury case, details can be vital. You may be able to make a claim on more than just one policy violation. If they refuse to tell you this information, you can get a sworn affidavit to help make them.

Prepare all the paperwork related to your personal injury and medical treatment before meeting with your lawyer for the first time. You will need your insurance documents, income loss statements, medical bills, or any other necessary correspondence. Having all of your documentation in order will help to give the lawyer the best overall picture of your case.

Ask whether a prospective lawyer has dealt with matters similar to yours in their career. This is a good way to estimate their ability to succeed on your behalf. If your matter is of the type with which they are very familiar, they may be a great match for your needs.

Court cases are always miserable, but a lawyer will make it a bit better. Follow the advice here, and do your best to find a reliable lawyer. Doing so can help you get the compensation that you deserve for the injuries you have incurred.…

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Personal injury lawsuits are quite common. However, it is often hard to know if your circumstances support a legal claim or how to proceed if it does. The following article will give you some great tips to help make the process much easier for you.

When recalling what you deal with after your accident, your injuries must be detailed clearly. Explain every injury, from simple cuts and abrasions to broken bones. Don’t forget to add to the list as bumps and bruises appear down the road. You may also want to consider any mental and emotional damage you have suffered after the accident.

Finding a reliable lawyer who can help you with your personal injury can be hard. Having said that, it helps to seek out someone with a good amount of experience in personal injury, specifically the type of injury you are dealing with. This is a tough field to master, so experience wins out when looking for a good lawyer.

Look online for personal injury attorneys that are reputable. Doing so will give you the information you need when deciding which lawyer to go with. Look for people who have practiced for several years and who have won a number of cases.

Be sure to meet your personal injury lawyer in person before hiring him or her. Don’t go by TV appearances! This is always a mistake. Do plenty of research on an attorney, and meet them before hiring them. Failure to do so can lead to a lot of wasted money or being stuck with an incredibly inexperienced attorney.

To help prepare for your personal injury case, make sure you keep copies of everything medically related to your case in a single location, such as a file or notebook. These should include any notes from doctors, payment receipts and instructions for care. Be sure to save any emails that your doctor sends you.

It is important to always ask your lawyer questions at the initial visit. This includes inquiries about what you should expect, how much it will cost and anything else you are wondering about. Asking lots of questions can be a good way to get comfortable with the process.

Once an accident or injury occurs, you need to get the numbers and names from witnesses as soon as possible. This can help you corroborate your story to the court, if need be. People forget over time, or move away, so getting information immediately is one of the best ways to reach them in order for you to prevail.

Keep in mind that just because you have an injury lawyer, you may not see a dime of recovery for quite some time. You have to be patient since the process can be quite lengthy. Sometimes, you may have to wait years for your case to be resolved. Know what you’re in for before starting, and you’ll spend less time feeling frustrated.

At this point, you should have a better idea for how to assess the merits of your case and move forward. Use the advice given in your own case, and you are sure to be victorious. This article should help you make the decisions you need to put this incident behind you.…