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

Find The Best Legal Assistance For Your Needs

Do you need a good lawyer for your case? Do you wish to learn how to choose a great lawyer that can help with your needs. The article below contains tips that will help you locate the right lawyer.

A good tip to remember when looking to hire a lawyer is to make sure you find a lawyer that has the necessary experience that you’re looking for. If you’re going to court soon for a criminal case, it wouldn’t make sense to bring on a divorce lawyer, you’ll need a criminal lawyer.

If you need a good lawyer, ask your friends, relatives and colleagues if they know anyone. It is best to get a recommendation from someone you trust rather than hiring a lawyer who spends a lot on promotional campaigns. If you cannot get a recommendation, do some background research on different lawyers.

When you think about hiring a specialized lawyer, do you worry about the associated increase in fees? Well, what are you willing to pay for a positive outcome? Consider the cost of losing! Also consider that the savings in time of a specialist over a generalist will save you money, lowering the total bill.

Though the expense of a skilled practitioner may be intimidating, you will likely end up saving money in the long run. The fact is that a general lawyer will spend many more hours researching your case than a specialist would, lowering their hourly costs.

A good tip to keep in mind when hiring a lawyer is to be very wary of any lawyer who seems more interested in getting paid than winning your case. There are many unscrupulous lawyers out there who will try to get you to pay a contingency fee, or even get you to mortgage your house.

Do not pick a lawyer because you saw their ad on television or on a billboard. Many big firms that can afford this type of advertising use lawyers that are fresh out of school for most of their cases, but charge you for the experience held by its highest lawyers.

If you need legal help, don’t necessarily use the lawyer you have worked with in the past. You may need a particular type of attorney, someone who specializes in the type of case you are involved in. Don’t worry, though. A specialist isn’t necessarily expensive, so you should be able to afford what you need.

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.

It’s better knowing that you’ve got a reputable and competent lawyer handling your case. This article has hopefully helped you figure out everything you need to know. Refresh your memory if necessary by reading this article as often as you need while choosing your lawyer.…

Personal Injury Case Hints From The Experts In The Field

Suffering a dog bite or a fall can result in serious physical as well as emotional harm. You have to ask yourself who the responsible party is. These questions can be answered by a lawyer who specializes in personal injury.

When hiring a personal injury lawyer, it is important to find a practitioner with vast experience working on behalf of plaintiffs. By researching the lawyer’s background and experience, you will be sure that you are engaging the services of someone able to work diligently to secure the compensation you and your family deserve.

When choosing a personal injury attorney, ensure that you are choosing a law office which has an entire department dedicated to personal injury. Meanwhile, it is common for law offices to pursue several different types of cases, it is important to choose an attorney who’s well versed in your niche.

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.

Hire a local personal injury lawyer. It may be tempting to call that 1-800 number you saw on the TV for this or that lawyer, but you’ll likely get a lawyer who lives nowhere near you. When things are on the line, you’ll want to be able to communicate face-to-face with your lawyers, so local is best.

If the claims adjuster seems to be trying to get you to make a quick settlement, and you are uncomfortable with that, it may be time to hire a personal injury attorney. Getting something over with quickly usually isn’t the best route to take. In fact, doing so usually means that you won’t get a fair settlement.

Meet a few personal-injury lawyers before choosing the one for you. Choosing a personal injury lawyer is tough business. You need to find someone who knows the law backwards and forwards and who you can get along with really well. It’s not easy. You’ll want to meet with a few at least prior to making any commitment. This way, you’ll feel more comfortable with your choice.

Be completely honest with your lawyer and find a new lawyer if yours suggests dishonest tactics to win your case. You should also report them to the local bar association. Lying to a judge carries with it very severe penalties and can guarantee that you do not win your case.

If you’ve sustained serious personal injury, make sure somebody takes pictures! If you are able, go back with a camera and get photos of the scene, particularly whatever it was that caused you harm. If you can’t go yourself, ask someone you know to take care of it. This evidence will help you prove your case in court and win.

You are eligible for compensation if you sustained an injury because of the negligence of someone else. However, simply knowing the information isn’t enough. You now have to apply it to your real-life situation if you want to be compensated. You are closer now to getting the money you deserve.…

Essential Tips For Successful Personal Injury Claims

There is no fortune telling involved in court cases; however, a good attorney can certainly increase your good fortune and help you win. Use the following advice to guide you through your personal injury claim. A win means learning all you can.

Personal injury law tends to be tough when it comes to fighting cases. Therefore, you need a lawyer with lots of experience. Find a lawyer who has been successful with many similar cases in the past and can provide you with a list of references.

The law firm’s size is a crucial piece of your decision. You will want a bigger firm for a bigger case. When your case is small, a small firm is fine.

For personal injury cases, only hire experienced personal injury lawyers. This common sense advice is often overlooked. You have to get someone that’s well versed in this area of law and one that has also dealt with this kind of a case before. You might not win your case if your lawyer is not properly qualified and experienced.

Do not move your automobile unless you are told to do so by an officer. This sometimes can make damages worse and the other party may not be as responsible for what they’ve done. Only move your vehicle if it is in danger of being struck again or is impeding traffic.

Those who are considering representing themselves in a personal injury case would be wise to discover all policies the defendant has. You may be able to make a claim on more than just one policy violation. They may not be willing to disclose this information, in which case an affidavit will be needed.

Before providing any kind of statements related to your injury to claims adjusters or opposing party representatives, obtain a personal injury attorney. What you say later can count as evidence in your trial, so discuss what you can say with your lawyer beforehand.

If you have physical signs from your injury, document them with pictures, before receiving any treatment. This makes your case stronger and proves your injuries. Your compensation can be significantly influenced by how severe your injuries are.

When a car accident occurs, be sure all details are documented so you can License plate and driver’s license numbers are imperative to obtain. Be sure you write down who the insurance companies are. Get copies of police reports or tickets given at the location of the accident. The more information you can provide, the more likely your case will be settled quickly.

Ask potential injury lawyers for references. References can tell you a lot about a lawyer and his work ethic. There may be problems with a lawyer who won’t provide references. It may be time to look for another lawyer in this case.

Though having a great lawyer does not guarantee a win for a personal injury case, it does increase the chances of success. Use the tips found above and follow your attorney’s instructions. Receiving the compensation you are due will make the long legal process worth it.…

Facts About Personal Injury And The Law

Are you considering filing a lawsuit for a personal injury but are unaware of how to begin? If that is the case, you are not alone. This article has some smart tips to help you navigate your own personal injury suit.

Be sure you clearly document your injuries in thorough detail after you have been hurt. Give a full description of any physical damage to your body. Make note of anything that may show up later, such as bruises. Additionally, if you seem to be stressed after an accident, you may be suffering from post traumatic stress syndrome.

Locating the best lawyer isn’t easy. Your best bet is to enlist the services of an attorney who is experienced in personal injury lawsuits. There is a lot of knowledge involved in these types of cases, so the greater the experience level, the better your chances.

A personal injury case is a hard one to fight. That means you need a lawyer with experience. Look for one who has prevailed often in this field so you can be sure your case is presented at its best advantage.

Your state’s Attorney Bar Association is a great place to find a personal injury attorney. Not only can they provide recommendations based on the area you are located in, but you can also check any lawyer’s records to ensure there are no negative complaints or proceedings against them on file.

Make sure you document your personal injury to prepare for legal action by taking plenty of pictures from every angle possible. Have someone else take pictures if you’re unable to. Photos should be taken as soon after your accident as possible. This will give a more accurate picture of events.

If you need an attorney, a retainer letter is essential. This will ensure that both parties are fully aware of what is expected and should lay out any and all fees in great detail. In this agreement, work out a payment plan and procedures to end representation if the attorney does not work out.

Don’t apologize following an accident. If you apologize, they could pin the blame on you. You might feel as though you did something wrong, but you must never apologize.

Physical manifestations of your injuries must be documented in photographs prior to medical treatments. This will prove how extensive your injuries were, making your case is stronger. Having photographic evidence can make all the difference in the amount of your settlement.

Ask your lawyer if they will consider accepting your case under contingency. This is a plan that only pays the lawyer when you are victorious. This ensures you don’t pay if you lose.

Don’t hesitate to ask a potential personal injury attorney for referrals. References can tell you a lot about a lawyer and his work ethic. You’ll know something is amiss if the attorney is not willing to share a list of references with you. You may need to look somewhere else if this is the case.

With this article read, you are ready to find help. Now you ought to feel happier about hiring an attorney and doing what you must so that you can prevail! May great luck come your way!…

Find The Excellent Lawyer With These Good Tips

A good lawyer is absolutely necessary if you need some help with a legal problem. You might even need to hire one someday. A good lawyer can mean the difference between winning and losing an important case. Read here for excellent tips on how to select the best lawyer and work with him or her correctly.

You should never just choose the first attorney that you meet. Research thoroughly. If you don’t, you may regret it. Ask others, and find out the things you want to know about lawyers.

Always get a lawyer’s history prior to signing up with their practice. Even though a lawyer has a license, that doesn’t mean they’re good. This will help you feel confident about your representation.

Check to make sure your lawyer is available to answer your calls or emails. One of the most common complaints people have about lawyers is being unable to get in touch. You shouldn’t get stuck wondering what’s going on with your case just because you have a lawyer that’s on vacation.

Know that anything discussed with a lawyer is confidential. So if you tell them you’re guilty, your company’s secret recipe or your wife’s age, they can’t tell a soul.

Listen to the advice your lawyer gives you, but keep in mind that they are working for you. If you don’t understand something they say, ask questions. Although your lawyer is representing you, they also have many clients.

Talk to your inner circle before you do the research on your own. There could easily be a reputable and fair attorney that has helped one of your friends or family members in the past. This can be very beneficial and also take the work off of you.

Do not hesitate to ask questions to your lawyer. An effective lawyer will always be willing to update you on the status of your case. Think about hiring a new lawyer if you feel your lawyer is leaving you in the dark.

If you don’t feel comfortable, do not hire that lawyer. Same thing if you are not comfortable with the fees. Don’t give any lawyer a blank check to apply to the retainer. Figure out the fees upfront so that you’re able to control what the costs are before losing control of them while your case is going on.

Use an attorney referral service. These services can lead you to the best lawyers available. Some screen the lawyers on their list based on experience and proof of qualifications. Others will list anyone who has liability insurance and a license. Find out what their standards are before using a referral service for this very important decision.

When you’re shopping around for an attorney, choose one that specializes in the same type of court case you’re involved in. There are many types of law, so you will want to be wary of this. Knowing in advance what a lawyer specializes in can save a lot of unnecessary phone-call time.

We need lawyers today. Choose a lawyer who is qualified and experienced to help you. Use the tips here to make the best decision possible if the time comes when you need a good lawyer. You’ll be glad you did.…