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

Successful Experts Share Their Advice On Lawyers With You

When a legal issue arises, it is important to have a truthful, smart, experienced lawyer. But, do you know what are the most desirable attributes in a lawyer when you are selecting one? Continue reading to learn how to obtain a great lawyer for your case.

Before you hire a lawyer, sit down and define the problem that you have. Sometimes, you may find that your situation is not bad enough to warrant a lawyer. Understanding exactly what you are going through can help save you a lot of money over time with a lawyer and court fees.

Make it clear up front that you would like your legal fee agreement in writing from your lawyer. This will help you avoid the surprise of an unexpectedly high bill. Make sure that all expenses and fees are itemized, so that you’ll have a clear understanding of what exactly you are paying for.

Even though hiring a lawyer can seem pricey, it could actually end up saving you money in the long-run. The truth is that general practitioners will have to do lots more research than a specialist, which ends up costing you lots of money.

A good tip if you’re thinking about hiring a lawyer is to not get swept away with just the costs alone. Deciding on the cheapest lawyer around isn’t always the best idea, and it can actually cost you more in the long run because they might not be very experienced.

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.

Before you hire a lawyer, see if you can resolve any dispute without one. Often people are able to resolve their problems without having to find a lawyer. If you are not able to solve your problem without a lawyer, then it is in your best interest to have a lawyer on your side.

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.

If you need a lawyer, start by contacting your local bar association to find out if there have been any complaints against the lawyers you are considering hiring. One or two complaints should not break a deal, but avoid those who have many complaints.

Now that you have gone over the article above, it shouldn’t be that difficult to locate a good attorney. Always remember the information you read when you need to find a lawyer. By doing this, you are certain to find the right attorney so that you have a great chance of winning your case.…

Solid Tips For Retaining The Right Lawyer

Though nobody likes to entertain the thought of needing an attorney, it is an unfortunate fact that most people will need the services of a legal professional at least once in their lifetime. As the world gets more complicated, this possibility increases. Rather than waiting until an emergency arises, establish a relationship with an attorney now. Read some tips here on how to do that.

Do not go with the first lawyer you happen to find in the phone book or on the web. Instead, research several attorneys to find the one best suited for your case. Therefore, make sure you ask other people and discover all you can on your potential lawyers.

A good tip when thinking about hiring a lawyer is to make sure you can always reach him or her. Many people complain about not having a lawyer who is easily reachable. Don’t be left wondering whether your lawyer is working or out having a round of golf.

When choosing a lawyer, word of mouth is one of the best ways to find one. Ask friends or relatives for recommendations. They can give you honest feedback on their experience. They can tell you how well or poorly they did in their situation. This feedback can help you choose wisely.

Make sure you understand the process involved with firing your lawyer. There are many lawyers that still require you to pay a portion of your fees even if you fire them. Read over all contracts carefully, so there are no surprises later in the event that you need to seek out a new lawyer.

If your lawyer has a busy schedule, your case may end up costing more to complete. That’s because it will end up dragging on as they tend to all of their other clients. Try to select a lawyer who isn’t running around like a chicken with their head cut off!

Inquire about the possibility of reducing costs by doing some tasks yourself. You may be able to help get the paperwork ready. If there is paperwork to be picked up at the courthouse, offer to pick them yourself so you will not have to pay the office staff to do it.

A confident lawyer is great, but one who promises you a win before you even sign a contract with him is not the lawyer you want to choose. There are too many unknown variables in play to make any sort of guarantee, so choose a lawyer who is willing to be honest with you instead.

If you have an attorney on retainer, ask him for a recommendation for a specialist if he cannot handle your case. Lawyers specialize in different things. Your general lawyer will know who specializes in what subject and will give a reliable recommendation. If you already have a general lawyer, they will do their best to help you find a specialized lawyer who is more qualified than them.

You are now aware of the need to protect yourself with legal council way before there is an urgency that leaves you vulnerable. Use the insights here to wisely choose an attorney who will have your back when the chips are down. Then relax and know that your are covered.…

Great Tips To Help You Hire A Lawyer

When you are hiring a lawyer, it can be hard to know where to start. There are lots of different lawyers to choose from, and it’s hard to know how to sort them out. Read on to learn the qualities you should seek in a lawyer.

Don’t hire a lawyer who comes to you. These guys are usually scammers and will take you for a ride, making your issue worse than it already is. Do due diligence in order to get the best attorney on your own terms.

If you are not completely comfortable with an attorney, keep on looking for someone else. The same applies to their fee schedule. Do not give your lawyer a blank retainer check with your signature on it. You want to find out the approximate costs before you start. If you do not get these details down first, costs can get out of control quickly.

Stay away from lawyers who promise you an easy victory in court. Very few cases are absolutely indisputable and a lawyer who seems overconfident might be lying to you. Do not hesitate to meet with different lawyers to ask for advice before you hire one and do some research on the reputation of these lawyers before you hire one.

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.

If you meet with a potential lawyer, and he or she states that they will absolutely win your case, thinking about looking elsewhere. There are no guarantees in life, no matter how clear cut a case seems. A good lawyer knows this, and as such, will not make promises they can’t keep.

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.

You should make sure you have a solid case before attacking someone in court. Keep in mind that some lawyers only have their own interest in mind and will advise you to go to court regardless of how solid your case is. Present your case to different professionals and do some research on your own before you go to court.

Try to find a lawyer that has a high percentage of cases with the situation that you are dealing with. For example, if you are going to court for tax fraud, you will want someone who specializes in this sector or at least has a lot of experience under his belt. This will help maximize your chance of victory.

Locating the best lawyer is rather time-consuming. However, it is preferable that you do your research carefully instead of making a hasty choice. Fortunately, you read the article above, so you have a wealth of knowledge to help you as you embark on your search for the best lawyer for you.…

Hints That Help When Dealing With A Personal Injury Situation

Did another party caused you to sustain a personal injury because of their negligence? If this personal injury caused you to spend a fortune on medical treatments you should consider asking for a settlement. This situation can be remedied through a personal injury lawsuit. The following article offers tips on the legal procedures involved in personal injury cases.

Make sure that you provide thorough details of your accident when you’re recounting your ordeal in writing. Talk about everything from a bruise to a concussion. 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.

Look towards your friends and family members for advice on the personal injury attorney to choose. Make sure that they know someone who specializes in this field or who has successfully represented them in the past. This will give you the best chance for success in regards to your particular case.

Get out of your vehicle and take photographs of the scene from several different angles. You should take pictures of your vehicle and that of the other party. This is important since it will prove the damages were not exaggerated by you or the person you got into the accident with.

You can get paid even if you suffer from a condition already. Be honest about your prior injuries when you speak to your attorney. You do not want him to get sandbagged with it once you are in court.

Check out your prospective attorney at the Bar Association. This association will share recommendations and give you some details on the accomplishments of the lawyers you are interested in.

Check into how large your prospective lawyer’s firm is prior to making any decisions. If your personal injury case is for a large amount, you may want a large firm to handle it. Conversely, a small case does not need to cost you a great deal of money in legal fees.

Don’t pay any money up front to a personal injury lawyer. A reputable personal injury lawyer will not require any money up front; in most cases they will offer a free consultation prior to taking your case. During this consultation be sure to ask them about exactly what you will be charged (whether it’s a flat fee or an hourly rate), and if they offer some sort of payment plan.

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.

As the above article has demonstrated, you should never settle for less than what you deserve. If another person’s reckless behavior seriously harms you, you can do something about it. Use the advice here to your benefit.…

Hiring A Lawyer Is Easy When You Know How

How do you find a great lawyer? This is an important decision and you should make sure to not screw it up. Read on to find out how to pick just the right lawyer to take care of your legal needs.

Try getting a lawyer with a retainer so you will be prepared for any type of legal issues. By having a lawyer on retainer, you will not have to spend time finding an attorney should an issue arise. They can give you advice as necessary, too.

A good tip to remember if you’re thinking about hiring a lawyer is to take your time and make your search thorough. You shouldn’t impulsively hire a lawyer just because you need one right away. There are so many lawyers out there, that you need to be selective to get the best one for you.

Check for your lawyer’s record to see the accomplishments that they have in their field and whether or not there are any issues in the past. The object is to get the best lawyer available in your budget, so do your research to find one that fits the bill. This choice can make a large difference in your life if you are facing a serious issue.

Use Google to your advantage when it comes to hiring a lawyer. Look for reviews about any attorney you are considering. If the general consensus is that the attorney you are interested in is lazy and incompetent, you should do your best to look for another attorney to handle your case.

Get all your information and papers together before visiting a lawyer. Your lawyer will be able to calculate a quote and give some helpful advice adapted to your situation. You can reduce fees by being efficient.

Before you hire a lawyer to take your case, make sure that you look into their credentials. Inquire what law school they graduated from and the states that they took the bar in. This will determine where they are allowed to practice law. You can also look into previous cases that they have won or lost.

When trying to decide on an attorney, make sure to ask about his or her credentials. You may find that certain lawyers have particular specializations. Particularly if you have a complex case, you need to know what each attorney is best at. Keep detailed notes so you can compare and contrast individuals later on.

Try to find a lawyer that has a high percentage of cases with the situation that you are dealing with. For example, if you are going to court for tax fraud, you will want someone who specializes in this sector or at least has a lot of experience under his belt. This will help maximize your chance of victory.

You should now be aware of what to look for in a great lawyer. Use the information from this article to help you find a reputable lawyer that will work hard for you and your case. The information this piece has given you will make it easier to find a good lawyer.…

Seeking Expert Advice About Working With Lawyers? Read This

When you need to hire a lawyer, it can see quite difficult sorting through all the possible options. You have to find one that deals with the type of case you have, and you want to find an affordable option. There are other factors to consider as well, so continue reading to learn more.

A good tip if you’re looking to hire a lawyer is to make sure you pick the right one. Location can be a big factor when looking to hire a lawyer. If you’re going to being to court soon, it’s absolutely crucial that the lawyer you pick is in the area.

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.

There are some cases where you can represent yourself without an attorney, but most of the time you should get one. There are many things that a layman does not understand about the law, which is why you should hire a lawyer. You don’t want to lose your case due to a lack of common legal knowledge when you could have hired someone.

Keep track of all of the interactions you and your attorney have. Take note of the day, time, fees paid and anything else that was discussed. This will help you if there are any billing or other issues later.

Make sure you understand the process involved with firing your lawyer. There are many lawyers that still require you to pay a portion of your fees even if you fire them. Read over all contracts carefully, so there are no surprises later in the event that you need to seek out a new lawyer.

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 free you from uncertainty over what costs will be and allow you to concentrate on the particulars of your case. This will ensure that you do not end up paying more money then you plan on.

Often, lawyers are specialized in a specific area of the law. If you need a lawyer, make sure you find one that can help you in the exact area that you need. Do not try to hire a personal injury lawyer to help you with your bankruptcy. Even if you are referred by a friend, if the lawyer is not specialized in the area of law you need, then keep looking.

After having read this article, you should now feel more like you can better find the lawyer that fits your needs. Using the tips you’ve just learned, find an affordable attorney that will take care of your case and also you. Time is important to a case, so find the right attorney now.…