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

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.…

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.…

Find The Needle In The Haystack – Steps To Take When Looking For A Lawyer

Have you ever needed a lawyer? There are many reasons you might need a lawyer. Regardless of your reason for needing a lawyer, there are a few things you’ll need to keep in mind. The tips in this article will help you navigate the legal field when looking for an attorney.

Take some time to think about exactly what your trouble is before looking for a lawyer. First, determine whether you really need an attorney. For example, divorce cases, criminal cases and financial cases usually require an attorney. Maybe you need a lawyer to deal with an estate. Maybe you just need a lawyer’s advice about a business matter, or something personal. Find the right lawyer to talk to.

Specialty lawyers are more costly by the hour, but they take fewer hours to complete a specialty task. The average lawyer will need to spend much more time researching the law pertaining to your case than one who is already familiar with that are of the law, resulting in less hourly fees.

If your court case pertains to real estate like buying or selling a home or being sued by a former landlord, you need a real estate lawyer. A real estate lawyer is familiar with the current laws pertaining to real estate.

Set a schedule as to when you and your attorney are going to meet. Sometimes, an attorney will get hired and not be heard from for awhile. When you have a schedule in place, you’ll avoid issues down the road.

Take heed of your lawyer’s advice, but remember they work for you. Speak up if there is something your lawyer wants or says that makes you uncomfortable. They want to help you, so speak up.

Don’t pick a lawyer if anything about them makes you uncomfortable. This holds true with their fees too. Never sign a blank check for their retainer! 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.

When you are searching for a business attorney, make sure you get some business recommendations. These companies provide services to some top legal players, so that may help you locate some good lawyers. For example, if you are thinking about small business laws, speak with a banker or an accountant. These people constantly interact with lawyers and may give you informed judgements.

Before signing with a lawyer, ensure you find out if your lawyer has dealt with and won similar cases to your own. Many lawyers will list a lot of types of cases that they can do, but you want a lawyer that has had success with your particular type of case. If it not found on the Internet, ask the attorney for this information.

Dealing with your lawyer should be both productive and helpful. You should be able to feel like you’ve got a partner that can work by your side and solve your issues. Take the knowledge you have gained to navigate the legal world successfully.…

Fantastic Advice If You’re Dealing With A Personal Injury

Personal injury is a very profound circumstance, so approach it with care. If you are injured because of someone else, you should go to court. Regardless of the outcome of the case, your efforts will help to influence laws in cases such as yours. The article that follows will help you in getting your personal injury taken care of.

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. Add bruises and bumps to your list of injuries. You should think about your mental state as well. For example, take note of any fears about driving in the future.

A personal injury case is a hard one to fight. Only a qualified, experienced lawyer can see you through the process. This attorney should have won numerous personal injury cases in the past. An attorney who has done this will be more likely to be aware of crucial tricks that will help you win.

American Bar Association resources offer help with finding a great injury lawyer. This is the best way to check an attorney’s reputation and track record in their community.

Check online for positively reviewed attorneys. The Internet can give you lots of information to help you make a smart decision. Look for successful cases and lots of experience when seeking out the best personal injury attorney.

Never seek out a personal injury lawyer because you saw their advertisement on television. Doing this is rarely a good idea. Research any attorney you want to choose. You might find that this lawyer needs to run ads on TV because they have no experience or have a bad reputation.

Check into how large your prospective lawyer’s firm is prior to making any decisions. If the stakes are high, you may want the resources of a larger firm. Conversely, if you’re dealing with a smaller case, you probably don’t need to spend too much on getting a large firm to help.

Talk to your lawyer to figure out whether you can settle out of court. This will both save you time and lower the amount of fees you have to pay the court.

Even though you may not feel you need to get in touch with a lawyer because of a small amount of pain following an accident, maybe you should. It isn’t unusual to feel this way. If you have persistent pain, you should consider contacting a personal injury attorney.

If you need to hire an attorney, you should get a retainer agreement. This will help you know in advance how much the lawyer will charge so there are no surprises later. You should work out a good payment schedule as well as a clause delineating how to sever your professional relationship, if needed, at a later date.

A personal injury case can be a lengthy process, but you want to be compensated for all the bills and expenses. Through this article, you’ve seen how to make a personal injury claim. Remember what you’ve learned and make the claim today.…

Expert Advice On Your Personal Injury Claim

Personal injury attorneys cover claims that have brought harm to some defendants. These lawyers end up dealing a lot with insurance companies, business and vehicle owners, and others who may be liable for a victim’s accident. You can learn how the process goes by reading the article below.

Never forget to include any lost income or wages into your personal injury lawsuit. This is the work you’ve missed or had to perform at a reduced rate of payment due to your injuries. You may include any money lost on classes you weren’t able to go to.

Search reviews online when trying to decide on a lawyer for your personal injury. Do not choose the lawyers you see in TV ads. Experience is the key determinant of success; the ability to produce an obnoxious commercial is not.

If you know any family members or coworkers who have been involved in a personal injury case, ask them for a recommendation. This will make it easier for you to find a suitable lawyer that will get you what you deserve. You deserve the best attorney possible for your situation.

Look online for a personal injury lawyer with a good reputation. You will be able to look at more information this way. Look for a lawyer who has experience with other similar cases and proper qualifications.

Never hire a lawyer off the TV. This will usually lead to a disaster. The slickest marketing does not always translate into the best legal representation. Schedule a face to face meeting with any prospective attorney. Taking time to research personal injury lawyers in your area can lead to finding the perfect attorney for your case.

Speak with your personal injury lawyer to determine whether or not it is possible to settle your dispute before it hits the court. This will save you some time, stress and money spent on court fees.

If you suffer an injury, it is important to report it immediately to the correct authorities. If you’re injured at work, tell the supervisor right away. If you get injured when you’re driving or walking on the street because of an automobile, call an ambulance and the police when you need to.

Do not move your car after you get into an accident unless law enforcement asks for it to be moved. This can sometimes make damage worse, and reduce the liability of the other involved party. The only time you should is if you’re in the way of a street that’s busy.

After you’re in an accident, don’t apologize to the other party. This may help them prove that you are at fault for the incident. Even if you’re wrong, you should wait before apologizing.

Getting a personal lawyer can be a tricky thing if you don’t know what you’re doing. You need to think over more than just the cost of a personal injury lawyer if you’re going to hire one. Use these guidelines to make rational, informed decisions about your personal injury lawsuit. Layers, documentation and legal requirements all affect your outcome.…

Essential Tips To Know Before You Hire A Lawyer

Do you want to secure solid legal counsel? If you need to know how to choose a lawyer you are in the right place. Read this article if you need help with finding the right lawyer.

If you have been accused in a major crime, you need to find a lawyer immediately. Be sure that you’re not trying to take on the case yourself, because you could end up being convicted of a crime. Lawyers maintain the experience that is necessary to deal with your issue.

Prior to looking for a lawyer, carefully examine your issue. First, determine whether you really need an attorney. For example, divorce cases, criminal cases and financial cases usually require an attorney. Even if you are not involved in one of these areas, you may need a lawyers expert opinion on a business or financial matter.

If your case involves a real-estate matter, then you need a real-estate lawyer. This person will know what they are doing and should be able to help you achieve a satisfactory outcome.

You may or may not be aware that anything that you share with your lawyer must be held confidential. This means that you cannot have anything that you share about yourself be used against you. For example, if you’re running a company, that lawyer can’t give any information about your case to a competitor.

Never go with the first lawyer you see in the phone book when you need one. It’s very important that you do some research on the matter first. You may even find that you’ve hired a lawyer without a valid license or one who has been sued for malpractice. It is always better to be safe than sorry.

Be sure to schedule regular times you and your attorney can communicate. A lot of attorneys are hired and are hard to find for quite some time afterwards. You can prevent a lot of issues by agreeing on a schedule right away.

Check to see the success rate of your prospective lawyers. Just because a lawyer lists that he specializes in cases like yours does not mean that he is able to win your case. You can find this information on the Internet with a little digging. The lawyer should willingly provide it, as well.

Think twice about giving a large retainer to any lawyer that’s going to deal with your case. If they have a certain retainer before taking a case, be sure you can be refunded what is not used. Talk with other lawyers if the initial costs are too high and the lawyer won’t work with you.

Do not hire a lawyer without signing a detailed fee agreement. This will prevent any unexpected expenses popping up during your case. Also, you better get your finances in order.

A great lawyer can give you peace of mind. Using the advice shared here to select your lawyer will make your work much easier. Take the time to compare different options and do more research on lawyers before you get started.…