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

Finding A Good Lawyer: Tips And Tricks

Has life thrown you a curve ball? Are you looking for some legal help? If so, you probably want to consult a lawyer and find out how they can help. When choosing and working with a lawyer there are some things you should know. Keep reading to learn some helpful tips.

Legal proceedings can often be confusing and complicated when you lack a background in the law, so make sure to let your lawyer know when you are confused or if you a clearer idea of what to expect from your trial. He or she should return your calls in a timely manner.

It is important that you stay in contact with your lawyer. Do not just assume that your case is their first priority. Make sure you establish a schedule soon so that you can prevent these sorts of problems.

A good tip to remember when hiring a lawyer is to keep track of all the bills pertaining to your lawyer. You don’t want to be caught off guard when it comes time to paying for everything. You can also consult with your lawyer if there’s something that doesn’t add up.

If you have been in an accident, do not hire any lawyer that comes to you and tries to solicit your business. This is not only unethical, but it is against the law. You do not want to hire anyone to handle your legal case if you have to worry about their legal ethics.

Do your research prior to hiring any lawyer. You may get the itch to get it over with and just choose someone from the Yellow Pages. Don’t do it! You won’t be happy with the outcome. Instead, research lawyers who could perform best for you. Track down some referrals (they may be online) and get an idea about his or her personality and track record. It’ll make your situation much better.

Money is an issue for many people these days, and the thought of paying for high legal fees can feel downright terrifying! Ask your lawyer if he or she might consider allowing you to pay off your fees with a payment plan; it’s possible that this might be an option for you.

Keep in mind that lawyers can’t work miracles. Any lawyer that promises you a winning outcome should be avoided. Nothing can be guaranteed, and you should not hire a lawyer who seems overly confident.

When looking for a lawyer, time is significant. However, it is not so important that you hire the first lawyer you meet. Always consider more than one lawyer. You need to make sure they have the skills you need, that you can afford them, and they will fight for your best interests.

You should now know some helpful things about using a lawyer and even some things about picking the right one for your needs. Use what you learned in this article to help you when it comes to working with a lawyer. A good lawyer is hard to find, but is invaluable.…

Need Legal Advice? Useful Tips About Personal Injury Law

A lawsuit might be a good option if you have been injured due to the fault of another. Personal injury cases are quite common. You need to learn about the situation, so keep reading.

Call the police as soon as there has been an accident. This should be done even if the other party tries to convince you that it is not necessary. Getting law enforcement involved will help you a lot when it is time to prove that an accident has actually occurred.

If you are looking for a reputable personal injury lawyer, ask around your friends and family for referrals. They may have been involved, or may know of someone who has used, the services of such a lawyer in the past. They will be able to give positive and negative recommendations based on their experiences.

Look for an experienced lawyer. While there are a lot of personal injury lawyers, not all of them are experienced. Personal injury law is extremely complicated, and an inexperienced lawyer may not be able to get you the outcome that you deserve. Look into past cases that they have handled to see if they were able to secure a substantial monetary settlement.

Be careful when dealing with insurance companies. You’ll probably be involved with an insurance company during the claim, so be careful. Their aim is to settle things quickly while paying as little as possible. You may wish to consult a lawyer before accepting anything from an insurance agency.

Try using the Internet to find a personal injury attorney. You can easily search locally on various databases, organization websites, and forums. You can even search for local attorneys that specialize in specific niches like car accidents. These resources can provide you with detailed lists of attorneys in your area, and some even include their website links.

Make sure the lawyer you choose has good experience with personal injury cases. Do not judge the lawyer by how many times he settled, but by what he was able to do for his clients. A personal injury lawyer may have many “successful” cases where he settled for less then he should have.

Make sure you ask the right questions if you talk to a personal injury lawyer. Make sure the attorney has experience in personal injury cases and is qualified in your state. Ask what kind of record the lawyer has. You want a successful lawyer, of course, and one who has years of experience.

If you are involved in a personal injury case, the other person involved may have a special “diplomatic status” where you cannot sue them. You need to check with your insurance company to make sure you are covered in this case. If you are not, you might end up paying for the entire accident yourself.

When you are injured, medical bills and lost wages add up quickly. A cash settlement from your personal injury lawsuit helps to alleviate these financial woes. You need to get the money you deserve from the person who owes it to you. It is your job to use this article to better your case.…

Excellent Ideas About Personal Injury That Are Easy To Understand

Personal injury cases are extremely complicated, especially if this is your first time being in this type of lawsuit. That is why you need to have some help. The following article will give you some great advice for winning your personal injury case.

It is important to make your accident report as detailed as possible. Explain every physical problem, be it a cut or a broken arm. Don’t forget to include any bruises and scrapes that you discover later on. You also need to think about anything that has to do with the mental side of things.

When preparing for a case, be sure to put in your lost income into your notes. This amount includes the time spent out of work, the lower wages you receive due to your injury, etc. If you missed a class you paid for, that counts, too.

Suffering from a preexisting condition does not keep you from collecting when you are injured. Just make sure you are honest with your representation about past injuries. You don’t want the attorney to get sandbagged when they end up in court.

Before making a decision, learn about how big the firm is. If you stand to gain a lot, you may want to hire a powerful law firm. But, if your matter requires more personal attention, a smaller, more affordable firm may be a better choice.

Organize all your medical records in one handy spot. Include all notes from your doctor, instructions for care, receipts for payments made to the doctor and receipts for all medical supplies that you purchase. Also, save email copies from your doctor about your injuries.

A lawyer is hired by you, and you are paying for their service. Because of this, they should treat you with respect and give you plenty of time for questions. If you aren’t getting the things you need, you may want to get another attorney. In addition, if you repeatedly are unable to get in touch with your lawyer, it might be time to start looking for another.

You need a retainer agreement before getting an attorney’s services. This will help you know in advance how much the lawyer will charge so there are no surprises later. In most personal injury cases, your lawyer does not get paid unless you win the case.

When going to your first free consultation with a prospective personal injury lawyer, be sure you bring along all copies of important documentation regarding your case. Pertinent paperwork includes medical expenses and how much time you have missed from work. Also, take any photos you have of your accident. These documents help the attorney provide a more accurate evaluation of your situation and its probable outcome.

Before you talk seriously to a insurance adjuster or the person responsible for your injuries, or make any kind of settlement yourself, you may want to get an experienced attorney retained. Your lawyer needs to advise you before you put something on record that could be used in court later.

Personal injury lawsuits can be tough to deal with. Fortunately, you can use the tips in this article to make things much easier for you. Just read over them and understand how to implement the advice given.…

Find The Best Legal Representation In Personal Injury

Are you seeking a good personal injury attorney? It can be tough to make decisions in times of crisis. You may have to turn to a personal injury attorney if you want to be happy again. Keep reading to learn more about how you can make sure you take your best case to court.

Write down the details of the accident immediately afterward, and be sure to make notes on the specifics of your injuries. Explain every physical problem, be it a cut or a broken arm. Remember to take note of any bruises, bumps and other symptoms that may appear as time passes. Realize that if you feel a great deal of anxiety, this may be a symptom of your experience.

When preparing your case, you must include in your notes data regarding loss of income. This is a detailed account of how long you were off work and any lost wages. If you missed a class you paid for, that counts, too.

Tracking down the best lawyer is a daunting task. Your best bet is to enlist the services of an attorney who is experienced in personal injury lawsuits. Their experience will help you win.

Your state’s Attorney Bar Association is a great place to find a personal injury attorney. You can find listings of lawyers in your area, as well as any issues those lawyers might have.

Look into how big the firm is prior to employing them. If you are facing a big suit, you will want to have a big firm behind your back. Conversely, smaller cases don’t require a larger firm .

A great way to prepare for your personal injury suit is to make copies of all your medical documents and keep them on file. Have the notes your doctor writes for you relating to your case, the bills from the hospital, and any other medical supplies you have to purchase. If your doctor e mails you, be sure to save a copy.

If you handle the personal injury claim yourself, you must learn every policy of the at fault individual. You might have to refer to several policies. If they don’t want to provide the information you need, you can get an affidavit that will make them.

If you have a consultation with a lawyer you’re thinking of hiring, you must make sure that you take copies of documentation that are needed to make your case. For example, you might include things like insurance company papers, medical bills, payroll information and police citations. All these documents can help your prospective attorney get a good idea of what your case will look like and if they can take it on.

If your injury happens at work or from a car accident, you need an attorney as soon as possible. Time is crucial when dealing with this type of case. An attorney can get to work and gain proper access to files immediately upon hiring.

Keep these tips in the forefront of your mind as you seek out just the right lawyer. Being thoroughly prepared means that you should have the best legal team. Hit the bricks and make it happen!…

Factors to Consider Calling a Lawyer

Do you need legal representation soon for any reason? Are you interested in learning about the right way to locate that lawyer? Read on to find out what it takes to search for the ideal lawyer.

If you’re accused of a type of serious crime, hire a lawyer right away. Be sure that you’re not trying to take on the case yourself, because you could end up being convicted of a crime. Lawyers are experienced professionals trained to deal with these situations.

Any time you meet with a prospective lawyer, request a written estimate of fees. Depending on how much experience or demand they have, the fees may greatly differ. It’s great to know the amount you will have to pay him prior to hiring them. Nothing is worse than losing a lawyer in the middle of your case.

A good tip when thinking about hiring a lawyer is to make sure you can always reach him or her. Some lawyers are hard to get ahold of. If your attorney is off playing golf, you would not wish to be left wondering about what could have happened.

If you have a lawyer retained, they will always be available if the need arises. Take all the time you need to choose a good lawyer instead of doing this under pressure. Having a lawyer on retainer also means that you will have expert advice on hand should you need it.

Make sure you know why you need legal representation before you go out to get a lawyer. The first step is to figure out if you actually require a lawyer. For example, divorce cases, criminal cases and financial cases usually require an attorney. Even if your need is not related to these subjects, you may still require an attorney’s assistance about a financial or business matter.

You should not choose the first affordable lawyer you find in the local yellow pages. Blindly choosing a lawyer is never a good idea. You don’t want to find out that you choose the wrong lawyer and end up losing your case. You want an honest representative.

Ask plenty of questions when meeting with your lawyer. A good lawyer will explain in detail what he or she is doing and keep you updated. If your lawyer is not doing a good job of explaining what he or she is working on, you should consider hiring someone else.

If you don’t feel at ease with a lawyer, do not hire them. This is also true of their fee schedule. Do not give your lawyer a blank retainer check with your signature on it. Ask for an estimated cost so you know what to expect.

Before your lawyer begins work, be sure you have a fee agreement in place. You can then put all financial issues aside, focusing on the case. You can also prepare your finances more accurately.

If you have a lawyer you can trust, it will be much easier to face your legal proceedings. Now that you’ve read this article, you’re better able to find that lawyer you need. Remember what you have just read as you conduct your search for the perfect lawyer.…