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

Search Below For The Best Tips About Personal Injury

Of course, no one can predict when accidents will happen. If you are the victim of an accident caused by someone else, you should be treated fairly. If someone else’s negligence caused your injury, you may be entitled to compensation. Keep reading to get some useful advice.

When in a car accident, write down what happened as soon as you are safe to do so. For example, what you were doing when it happened, how you are hurt, what damage there is to your car, what damage there is to the other car, and what you think caused the accident or how the other driver was at fault.

Be sure to make note of all your losses pertinent to your injuries (e.g. loss of income, expenses, etc.) 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.

Even if you are in an accident and you do not feel like you are injured, go see a doctor. There are many times that injuries come up later as a result of an accident. Seeing a doctor will show that you had some concerns about your condition early on.

When searching for a lawyer to represent you in a personal injury case, you should first be careful to avoid “ambulance chasers”. Check with your local bar association for a list of reputable attorneys. Then outline the details of your case to the prospective attorney and follow any advice you are given.

When comparing prospective personal injury attorneys, it never hurts to ask for recommendations from people who were recently involved in a lawsuit like your own. You will have a much better chance of getting the results you want with the right lawyer. You deserve the best attorney possible for your situation.

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.

When you want to win a personal injury case, look for a boutique firm. The smaller, more specialized firms tend to do a better job on such a case. They have the passion and drive, plus the knowledge and experience necessary to get you a win or a big settlement offer.

Look for a personal injury lawyer that’ll work on a contingency fee. This means he or she will cover all costs associated with the case and be paid at the end through a percentage of any settlement. You may need to shop around to find the right one here, as some lawyers may be more comfortable with working your case like this than others.

These tips are for people in your situation. This is to make sure you make the party that is responsible for your injury accountable as well as financially responsible. You may be owed money by another party and have to hire an attorney to help you through the legal mess. You should be better prepared to handle that.…

Get The Best Attorney On Your Side

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.

Ask plenty of questions when meeting with your lawyer. A good attorney keeps his client informed. If you feel, at any time, that your lawyer is unable to respond to your questions as he should, you should discuss this with him, and if need be, find someone who will.

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.

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.

When you are going to a consultation with your lawyer, do not be scared to do your own interview. Ask him or her about their familiarity with the situation you are in, how much success they have, or anything else you feel you should know. If they refuse to answer your questions, they may be trying to hide something, meaning you may want to look elsewhere.

If you need a lawyer, you need to make sure you find one that is in the proper jurisdiction. Most of the time you will be able to find a lawyer that is licensed to practice in the state you live in. Make sure they are qualified to practice law within your state.

Find out up front how frequently you should be in tough with your lawyer. If you need them to get in touch with you quickly after you contact them, communicate that to them up front. If you face this problem with your current lawyer, find a new lawyer at your earliest convenience.

Take written notes anytime you are meeting with your lawyer. Yes, your lawyer is on your side, but you are still accountable for any items that are promised, expected, or forgotten. This is especially true in financial conversations. You’ll want to have as much documentation as possible just in case there are any issues.

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.…

Find The Lawyer You Need Today With These Tips

Just because a lawyer is well trained does not mean they are the best for your case. Read on to learn more about choosing the best lawyer for your issues. You’ll be thankful you did.

If you are facing serious criminal charges, you need to hire an attorney straight away. Make sure that you do not try to go forward with anything yourself, as this can put you in a situation where you may break a law. An experienced lawyer will be able to handle your situation appropriately.

Follow your attorney’s advice, but do not forget that you hire him to work for you. Make sure to let them know if you aren’t comfortable. There are several cases that they work on at once, so they could overlook something.

Do not be shy when it comes to questioning your lawyer. Your lawyer should explain everything they do and keep you up-to-date on a regular basis. You may want another lawyer if the one you have will not give you any details.

It is important that you completely trust your lawyer. Particularly if the matter has to do with your business, you need the person to be honest with you. Some lawyers request the signing of blank checks and retainer fees. Remember that hiring the wrong business lawyer can sink you financially. Take special care to protect your interests.

Speak with the bar association to get the scoop on the lawyer that you choose. If they have a few complaints, it need not act as a deal breaker; just make sure to not hire someone if they have a mile long list of complaints.

When you look for an attorney, be sure they specialize in your kind of case. 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.

Yes you can find local lawyers using online services, but don’t think that this means these lawyers are well vetted. Do as much background research as possible to find out more about the lawyers you find listed on these services before you contact them to ask more questions.

Remember that lawyers are not miracle workers. If you find a lawyer that says that guarantees that they will win, then he’s a liar who should be avoided. In legal matters, nothing is a sure bet.

You need to have a smooth working relationship with your attorney, so it’s important that you get along well. Do not expect to develop a good relationship if your lawyer does not really make you feel comfortable. If your inner alarm bells are ringing, then that prospective lawyer is not the one for your case.

It is important to find a lawyer who is adapted to your needs. However, it will be easier to find a lawyer for the specific problem you have when you know about each lawyer’s specialty. Use the tips you just read and do more research on lawyers and legal issues before you get started.…

Expert Advice On Your Personal Injury Claim

Personal injury lawsuits are quite seriously and should be handled as such. If you are hurt because of another person’s negligence, file a personal injury claim. Even if you lose your case, your efforts were correct and can help improve the world. This piece is meant to assist you with your personal injury.

Ask loved ones for their advice when choosing a lawyer. This will help you find the best lawyer. You should have the best lawyer out there.

In many cases, your lawyer will settle your personal injury case before it ever goes to trial. This will save you some time, stress and money spent on court fees.

A great way to prepare for your personal injury suit is to make copies of all your medical documents and keep them on file. Be sure to save all bills and receipts, as well as any notes and instructions you receive from your doctor. Keep copies of emails too.

Your doctor’s appointments must be regular and documented if you are involved in a personal injury suit. You can tip the scales in your favor by keeping detailed records of your experience and proof that you are justified in filing a claim. A lack of this proof makes you look like nothing more than a scam artist, attempting to get over on an insurance company or on the court.

If you are going to hire a lawyer, make sure you get a retainer agreement in place first. This helps you know ahead of time what representation will cost you. Arrange a payment schedule in your retainer agreement and spell out how the relationship can be terminated if it proves unsatisfactory.

Don’t apologize to the other party right after an accident has occurred. This can help them prove it’s your fault. You might feel as though you did something wrong, but you must never apologize.

Keep in mind that it may be a while before you see any monetary compensation. You have to be very patient. The truth is that your matter may drag on for multiple years. Remember this from the start and you may be able to avoid some of your feelings of frustration.

If you have physical signs that you have been hurt, and have taken pictures, do so before you see a physician. You’ll have a stronger case if you have all your injuries documented in this way. Depending on how bad things are, you may be able to get a larger reward if you’re dealing with a lot of suffering.

The location of your lawyer’s office is very important. Find a lawyer who is very close to you for easy access. A person feels much more accountable to give you the right service if they are near you. You and your lawyer will communicate more quickly, and it is not as likely that your calls will go unanswered.

Personal injury law suits are rarely resolved in a short matter of time, but the final reward at the end may make the whole procedure worthwhile. Hopefully, this article has provided you with all the information you need to know to file a claim and see it through. Remember the advice you have received.…

Fantastic Advice If You’re Dealing With A Personal Injury

It can be time consuming pursuing a personal injury case, but it will be what you need overall. You may even help prevent others from having similar incidents in the future. Keep reading to learn what to do when you are injured because of the actions of another party.

Write down the details of the accident immediately afterward, and be sure to make notes on the specifics of your injuries. Don’t overlook even minor injuries, like cuts and scrapes. Make note of anything that may show up later, such as bruises. Also, think about your mental state after experiencing the accident, like being scared to drive.

When preparing your case, you must include in your notes data regarding loss of income. This will document all of the times where you lost money due to your injury. You may also be compensated for any classes you missed.

When looking for personal injury lawyers, check online reviews. Personal reviews are much less biased than a promotional commercial from the actual law firm. Doing your research as to who you would like to represent you will yield you the best possible results.

Questionable lawyers often use flashy ads to bring in a large volume of clients, and should be avoided, regardless of how convincing their commercial is. Along with the negative attention these outlandish advertisements can provide, it can be seriously hard to determine the capabilities of those lawyers based on their ads. Personal meetings are essential to making a good decision.

When working with an insurance company, always proceed with caution. Always err on the side of caution. The last thing you want to do is divulge too much while speaking with insurance companies. The purpose of these businesses is to have the matter solved as fast as possible. You might wish to speak with a lawyer prior to accepting anything an insurance company wants to give you.

Contact the authorities asap if you’ve suffered a personal injury. If you are hurt at work, inform your supervisor immediately. When you’re hit by a car, call the cops immediately.

If you are injured in an accident, take action right away to protect your legal rights to compensation. Sometimes, you only have a certain about of time to file a suit. You need to talk to an attorney right away and inquire about deadlines before fully deciding whether to start a case.

During meetings with various lawyers, you should be able to provide detailed documentation and information related to your case. Any documents issued by the police in relation to your accident are essential. This paperwork is necessary for any potential attorney to see. They can judge whether your case is worth pursuing.

It may seem overwhelming to visit this vast brigade of lawyers and doctors, but it’s necessary if you want to win your case. Following the advice from this article will help to give you the advantage you need. Doing exactly what your doctors and lawyers tell you to do is instrumental to you winning your case.…

Essential Tips To Know Before You Hire A Lawyer

You can win your case if you prepare yourself for it. No matter what your case is about, you need to have someone representing you that can understand what’s going on. Use the advice in the following article to make the best choices for your situation.

Speak with a potential lawyer about what they charge. 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. You don’t want to have to dismiss an attorney late in the game because you simply can’t afford them.

Define your problem before you seek out a lawyer. First, you should think about whether you really need a lawyer. For example, a lawyer is needed if you’re charged with an offense, have a lawsuit coming up or if you’re in a divorce. You may also need an attorney’s expert opinion for a financial or business matter.

You must let your lawyer know your communication expectations. Many attorneys get hired then they disappear without contacting their clients for extended periods of time. Getting a schedule put together in the beginning will assist you in the future.

You should always speak with your friends and family before researching your options alone. Talking with them should help you narrow down which lawyer you are interested in working with. Their personal experience will work to your benefit.

When searching for a lawyer who specializes in business, try getting recommendations from businesses. You may get great recommendations as to what lawyer to choose. For example, if you are thinking about small business laws, speak with a banker or an accountant. People in these professions interact on a regular basis with people in the legal profession, so they may have insights you need.

When selecting a lawyer, make certain to research their reputation as much as possible. Look for reviews online and contact your local bar association to find out more about the lawyers you are interested in. That brings a positive outcome.

You need to make sure you’re asking enough questions. When first consulting with a lawyer, they should be ready to tell you what they will do for you, what the costs will be, and how long the matter will take to resolve. The lawyer must make certain you feel confident and comfortable in terms of the experience and knowledge the lawyer displays. If they are unwilling to do that, just walk away because they are wrong for you.

Speak with the bar association to get the scoop on the lawyer that you choose. One or two complaints should not break a deal, but avoid those who have many complaints.

You should feel comfortable about the lawyer you pick. Your lawyer should be intelligent but also friendly and communicative. He or she should make you feel welcome in the office. If the lawyers don’t do this, look for a new one immediately.

Regardless of the reason why you are in court, being prepared is crucial for success. That’s why you need a lawyer working the system on your behalf! We hope that the information presented here has helped you in preparing yourself to enter the legal system.…