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.…

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.…

Find The Perfect Lawyer By Following These Ideas

You are likely to feel nervous and unprepared to make a decision about choosing an attorney if the need every arises. You may not have the time to wait around, and that can be hard to deal with. This is the reason that you’ll need a little assistance. The following piece will give you advice to help you boost your comfort levels with lawyers. Continue reading to find the answers you seek.

Make sure you lawyer is easily reached when they are needed. Not being able to reach their lawyer is a very common complaint that people have. If you lawyer is out of pocket, you could be left in a quandary.

Make sure your lawyer and you can meet in person to discuss the case regularly. There are attorneys who do not regularly contact their clients. Set up a schedule to confirm that everything is under control.

Do not choose a lawyer if you are feeling unsure about them. This also includes how comfortable you feel with their fees. Don’t sign blank checks to pay their retainer fee! Before you get involved, ask what the costs are estimated at.

Find out whether or not a lawyer has experience with your particular problem. Ask the lawyer for proof of his experience, don’t just take his word. You can find this information on the Internet with a little digging. The lawyer should willingly provide it, as well.

You should be cautious of providing a lawyer with a large retainer to tackle your case. When a lawyer wants a lot of money up front, make sure that anything left over will be returned to you. Try asking around since many lawyers will take smaller retainers and charge the difference.

If you want to save a lot of money and time, you should prepare as much as you can before even going to see a lawyer. When the lawyer knows all the details of your case, he or she can give you a better fee estimate. Efficiency can help trim your legal expenses greatly.

You need to have a smooth working relationship with your attorney, so it’s important that you get along well. If you aren’t comfortable with a particular lawyer after you meet with them, you won’t ever establish a good working relationship regardless of that lawyer’s experience and credentials. Talk to the lawyer and get a feel for how well you can relate to him.

When meeting with a lawyer, make sure you are prepared. They get paid hourly. When you are looking for paperwork or asking them to wait for you, you are paying for their time. Be well prepared for your meetings with your lawyer to make the most of the fees you are paying and to keep your face time to a minimum.

You should feel a little better about contacting an attorney. If you need a lawyer, the advice included above will help you choose someone you are comfortable with and work with him or her in the most effective way possible. The tips you just read will help you find a reliable lawyer and increase your chances of winning your case.…

Essential Tips You Need To Know Before Hiring An Attorney

Lawyers specialize in all different fields of law, and it can be confusing to know which one is right for your specific situation. To pick the right article, keep reading. You should be pleased with the outcome.

One thing that is very important when selecting a lawyer is ease of access. A lot of people are disappointed because their lawyer is impossible to get in touch with. If your attorney is off playing golf, you would not wish to be left wondering about what could have happened.

Avoid selecting the first lawyer you find in the phone book. Do some background research and ask people you know for recommendations. You might select a random lawyer and later discover that he or she had lost her license! Therefore, you need to be careful!

Ask business associates for a business attorney referral. Business people who regularly deal with lawyers probably have better information about them than others would. If you need a lawyer for your small business, talk to other small business owners who have run into the same issues. They can tell you from experience who is good.

Create and stick to a budget. You might have a situation and case where you feel you are right, but at what cost? Look into the fee structures of each lawyer you contemplate hiring. If they know your budget and your goals, then they can better decide if they can help you with your legal issues. Understand that things may cost more than you initially thought.

When you pick a lawyer, thoroughly look at their reputation. Online reviews, coupled with bar association reports, will give you an accurate idea of whether a certain lawyer is right for you. Doing this will save you a great deal of money, time and irritation as time passes.

One thing to keep in mind when working with lawyers is that you should communicate what you feel with them. If deadlines are imminent, make sure the lawyer receives everything necessary to help him or her succeed. Being prepared ahead of time will ensure that things go much smoother.

When you look for an attorney, be sure they specialize in your kind of case. Lawyers specialize in all sorts of legal matters from real estate law to criminal defense and everything else in between. Check in advance, to save you a lot of time and money.

You can realize real savings of money and time if you make certain to assemble all necessary papers and information prior to the initial consultation. The more information your lawyer has, the more they will be able to estimate the time and cost involved in winning your case. Efficiency is key to saving yourself some dough.

See if you can do anything to lessen the attorney costs. It’s possible that you can help to make phone calls or prepare paperwork. Ask if there are any documents you can pick up, instead of having the law office do it for you.

As previously mentioned, not every lawyer can meet each person’s specific needs. Do some research and compare all your options before choosing your lawyer. Use the advice you read in this article and you shouldn’t have a problem.…

Figuring Out How To Get Legal Help

If you looking for a lawyer you should understand what it takes to find one. This is not as trivial as selecting a chocolate bar, so it’s extremely important you realize the importance of the decision. Continue reading to find learn more about choosing the right lawyer.

Never select the first lawyer you come across. Do your homework thoroughly, as choosing the wrong lawyer may lead to a negative outcome. Do some research into any lawyer that you think could be right for you.

Always obtain some background on an attorney before hiring him. Not all practicing lawyers are successful. An attorney may have a valid license, but not be very good. Be aware of their record so you can be sure they will do a good job.

Don’t hire a lawyer who presents himself as your representation. This is typically a scam where lawyers are simply looking for money. Therefore, take the time to hire a great lawyer who will be happy to serve you, but is not desperate.

The lawyer you choose to represent you should be one that is easily reachable by phone. Having issues with reaching a lawyer is something that a lot of people complain about. Not knowing how things are going in your case is extremely terrifying.

Never hold back any questions you have for your lawyer. The right lawyer will be happy to answer any questions you have. If the attorney you are working with fails to communicate openly and willingly, then perhaps you need to reconsider your choice.

Business recommendations can be very effective when retaining a lawyer. Companies who work with attorneys on a regular basis can be a good resource for referrals. If your case involves small business law, then get in touch with a banker, account, real estate broker, etc. Such individuals often deal with lawyers and may have some useful insights to share.

Only hire a lawyer you can trust. Especially if the lawyer you are looking for is for your professional matters or business. Make sure to protect yourself if there is documentation. This requires a very high level of trust and faith in the lawyer you have chosen. Keep yourself protected.

Prior to selecting a lawyer, speak with the bar association where you live so that you can find out if any kinds of complaints have been filed against that person. When they have a ton of complaints, skip them.

Before a lawyer works on your case, sign an agreement regarding fees. This is good for you because it will save you financial worries when you should be worrying about your case. You can begin to save as necessary.

Now that you’ve come to the end of this article, you know what you need to do. Use all you have learned to get out there and find a lawyer who will lead you to victory. This is such an important decision; you will be happy that you took the time to research the best way to find an attorney.…