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

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.…

Techniques To Simplify The Search For Good Personal Injury Counsel

If you’re like most people, you are not that familiar with lawsuits. You may ask yourself what you need to do in order to go through with one, and not have the information you need to go forward. That’s why this article is here, to help you figure out what must be done. Keep reading for some great tips.

Do your best to stick with local personal injury attorneys. Generally speaking, local attorneys are more accountable to you and that can lead to you being more satisfied with what they do. You also won’t have to make long distance calls, you can have quicker communication, and you can meet with them easier.

At your first meeting with your personal injury lawyer, bring anything that you think is relevant to your case. For example, if the police were involved, bring a copy of their report. If you have spoken with your insurance company, bring any notes that detail what happened with them. All of this information will help your attorney start piecing together your case.

The only people you should discuss a personal injury case with are your insurance agent, your spouse and your attorney. If an insurance adjuster calls you to record a statement about how the accident occurred, give them the number of your attorney and tell them that this is who should be called if they have any additional questions.

Carefully read legal advertisements of personal-injury lawyers to determine the legitimacy of the practice. Sometimes, a lawyer will guarantee that they will win for you when this is an impossible situation to predict. Skip over these lawyers as they are simply trying to reel you in for the money you bring to the table.

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.

It is important that you keep good documentation if you have been involved in an accident. Most personal injury lawsuits take time; therefore, it is important that you write down the name, date and time of the accident, what happened and any communication you have had with the insurance agency.

The key to winning a personal injury lawsuit is having good records. These records will help your attorney prove who was at fault for the accident. By keeping good records, you can quickly find any information your attorney needs. This information should include the names of witnesses, the date of any treatment and medical records.

Going through a lawsuit is not always easy, but that’s why you need to be vigilant about the steps you can take along the way. Hopefully the tips in this article are going to help you do all you need so that you are successful with your case. Keep this article with you so you can refer to it often.…

Figuring Out How To Get Legal Help

It is likely that you will someday need the services of an attorney. How, then, should you choose the right person for your needs? What can you expect from the lawyer-client relationship? Read this article to learn more about lawyers and how to find a good one.

Never hire the very first lawyer that is found when you’re trying to locate one. Make sure that you research attorneys thoroughly to avoid making a bad decision. Get all the information you can about those you’re considering hiring.

If you find that a lawyer is actively seeking you out, refrain from hiring them. If you are involved in a case that can be costly, they may be trying to scam you. Really study up and choose a lawyer that’s right for you.

Did you know that your lawyer must keep all information you share confidential? Stated in another way, if you talk about important information pertaining to your family business or other key issues, the lawyer cannot pass that data onto others.

Choose a lawyer for a reason, not because of a fancy ad, commercial, or slick website. You need to thoroughly research your options so that you obtain the best lawyer. Some lawyers recommended by real estate agents have lost licenses due to malpractice. Use caution.

Make sure your lawyer and you are on the same page when it comes to scheduling meetings. Keep in touch. Many lawyers are not the best when it comes to communication. Make sure you establish a schedule soon so that you can prevent these sorts of problems.

When looking for a business lawyer, try getting some business recommendations. Those companies who provide services to top legal players may help you find some good lawyers to consider. 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.

Find a lawyer that is trustworthy. This is especially important when retaining an attorney for financial matters. Make sure to protect yourself if there is documentation. The fate of your finances are literally in your lawyer’s hands in these cases. Be sure to cover yourself the best you possibly can.

It is important to do your own research into any lawyers you are considering hiring. Look for reviews online and contact your local bar association to find out more about the lawyers you are interested in. This will save you much time and frustration in the long run.

Speak with your lawyer constantly to get the inside scoop on what is going on. If your attorney tells you that you must meet certain deadlines that will affect your case, do it on time. Being prepared ahead of time will ensure that things go much smoother.

Being prepared is half the battle. You should arm yourself with as much information as possible before deciding on the right lawyer. Just like the Boy Scouts, be prepared. Having a legal issue can be pretty overwhelming. Hopefully after reading this article you can now choose a lawyer with confidence.…

Find The Perfect Lawyer By Following These Ideas

There are many different things to look for when choosing a lawyer. It is vital that you understand the importance of a good lawyer. Read on to learn more about choosing a great lawyer.

A lawyer is a must if you’re charged with a crime. Be sure that you avoid filings by yourself, which may result in problem where you break the law. Lawyers are qualified to handle such matters on your behalf.

Rule number one of hiring a lawyer: Ambulance chasers are bad news. This is typically a scam where lawyers are simply looking for money. Find a quality lawyer that has a solid reputation.

Although a lawyer specializing in a particular area of the law may cost more upfront, they generally save you money in the end. If you get a good lawyer and they win, you can save a lot of money.

You may wish to give services that refer lawyers a try. They can often connect people to an attorney that is right for them. Find out first what criteria they use in determining which lawyer to recommend; some do more screening than others. Some referral services will recommend any attorney with liability insurance who has passed the state bar. Find out what their standards are before using a referral service for this very important decision.

A good place to find a lawyer is the Internet, but don’t believe everything that you read. Always research anyone that these types of services recommend and then go in for a meeting with them as well.

You will be able to save some time and money if you have all your paperwork together. Your lawyer will be able to calculate a quote and give some helpful advice adapted to your situation. Efficiency can help trim your legal expenses greatly.

Check the friendliness of the people at the law office. When calling, keep in mind how quickly they return your call and how friendly the receptionist appears. If you are not treated professionally before you retain the lawyer, they will likely treat you even worse once the lawyer is working for you.

Getting along well with your lawyer can only help in the long run. If you do not feel comfortable with the lawyer during your first few meetings, you will never have an ideal client-lawyer relationship no matter how experienced the lawyer is. Your gut is truly the best judge of character.

You may want to ask your regular lawyer to refer you to another lawyer that specializes in what you need. Each lawyer can be a specialist, and your attorney can be an effective resource for locating a specialist that can assist you . If you are a current client, your lawyer will want your continued business and give you a good referral.

Now you’re ready to find a great lawyer. Utilize the tips provided here so that you can obtain the best lawyer to win your case. Since this choice is important, you’ll be thankful you read this piece.…

Expert Tips For Handling Your Personal Injury Claim

Suffering a personal injury can have a lasting impact on your physical and emotional health. Do you know the party responsible for this damage? If you’re asking yourself this, a personal injury attorney may get these answers for you.

Asking your friends and family for personal injury lawyer recommendations can land you a great attorney. When you do that, you are going to have an easier time finding an attorney you can communicate well with and who can win for you. Getting a good lawyer is the best thing you can do for yourself.

Consult the directory of the ABA for recommendations for lawyers. You can check the records of lawyers to make sure they don’t have complaints or cases against them.

Scour the Internet for leads on personal injury attorneys in your area who are reputable and successful. The more respected the attorney is, the more information you’re going to be able to find about their practice. You will get the best results from an attorney that has experience and many successful cases.

Keep all of your medical files together when you are preparing your personal injury lawsuit. Also, you should keep notes from physicians and everything related to your particular case. Be sure and save all emails about your injury from your doctor.

Remember that any lawyer, no matter how qualified, works in your employ. You deserve to be treated with the utmost respect in any case, and your lawyer should make you the number-one priority. If a lawyer fails to treat you properly or pays you little attention, think about getting someone else. Also, if you can’t reach them, you may need a new attorney.

Do not miss any doctor’s appointments when you suffer an injury. If you want to win your personal injury lawsuit, you must have your injury and your proper handling of it correctly documented. If you lack the proper documentation, it may seem like you are trying to game the system.

Avoid waiting to start legal proceedings if you get hurt. There could be a deadline, which after that time you can’t file a suit. Contact a lawyer to find out your options as soon as you can.

Following any injury or accident, get numbers and names of witnesses as soon as possible. Your attorney needs to talk to them right away. Phone numbers allow you to stay in contact with witnesses if they move, and quick statements are more likely to be accurate.

You must go to the hospital or doctor as soon as you get injured. Documentation of the accident location and severity is essential, as is a professional medical diagnosis. It may be impossible to prove your case without these documents.

If you have been injured in an automobile accident, write down all the details you remember to give your lawyer. Write down license plate numbers. Know the names of any insurance companies that may be involved. Get a copy of the accident report and tickets that were written at the scene. Your case will go faster when you can do much of the legwork.

Clearly, when another party has caused your injury, you may be able to secure compensation. You can choose the best personal injury attorney for you by using the tips in this article. This will bring you closer to getting the money that is rightfully yours.…

Essential Tips You Need To Know Before Hiring An Attorney

Lawyers play a huge role in today’s society. Lots of important processes require lawyers. You have to find a great attorney to represent you. The advice you’re about to read can help you do just that.

Before you agree to use the services of a lawyer, ask for his history. A lawyer may have his or her own practice, but this does not always equal success. Learn about their record so that you’re confident that they can accomplish the job properly.

If you have been accused in a major crime, you need to find a lawyer immediately. Let your lawyer guide you, because after all they are the real experts. You are in a serious situation, and you need the assistance of someone with training and experience.

You may want to have an attorney on retainer just to be on the safe side. This way you are not under pressure, but rather can take your time finding a lawyer that you can trust. A lawyer is always available to give you advice or represent you in any way.

Maintain records of each contact you and your lawyer have. Note the time, date, what you talked about, any money you paid, and what they said your bill was. This is a good way to avoid unpleasant surprises such as shockingly large bills that make little sense to you.

Try your best to avoid a large retainer. This may not be given back to you at the end of your trial. You also need to check with others, because there are attorneys that will charge you a small retainer, charging you later for anything additional.

Ask every lawyer you interview many questions. They should have an answer for all of it. Their responsibility is to make you as comfortable as possible with their experience and knowledge. If you do not, you must move on and interview another lawyer.

You may wish to give services that refer lawyers a try. These types of services can aid you in locating a good lawyer. Some screen the lawyers on their list based on experience and proof of qualifications. Other services will list lawyers who meet the standards of the state bar. Decide how specific you want the recommendations to be before choosing a service.

Be realistic and understand that there is only so much that a lawyer can do for you. If you see a lawyer talk about how he is certain to win your case, it is likely that he is a liar and you should avoid him. Nothing can be guaranteed within the law, so never get with a lawyer that says he’s always going to win.

If at your initial consultation, your lawyer guarantees victory, leave. Most lawyers know that things could go either way, and this means that if you’re not told this, someone is just trying to make money off of you. Look at this behavior as a red flag, warning you to continue your search for a better attorney.

Lots of things must be kept in mind as you seek a lawyer. Using the tips in this article will be a big help. The law does not have to be intimidating when you have the right lawyer on your side.…