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About Straightpoop

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  • Nationality USA
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  • Year of birth 1949

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  1. How to declare property inheritance in foreign country?

    @seper    You should be in the clear with respect to moving the proceeds to Germany.   The operative number is the fair market value of the property as of the date your mother died expressed in EUR at the rate in effect on that date.  If a subsequent sale produces a much larger number which exceeds the €400K Freibetrag then the FA (assuming it learns of such a sale) might challenge your original valuation.  So if you think there will be substantial appreciation and it might be a close call then an appraisal - even at this late date - might be useful.   The 400K Freibetrag applies to taxable gifts made within a 10-year "look back" period as of the date of the most recent gift.  Thus, a gift from your mother made more than 10 years prior to her death would not count against the Freibetrag.  In other words, the Freibetrag renews every 10 years.  Since the Freibetrag is dependent upon the relationship between donor and donee it logically ends with the death of either party to that relationship.   If there is in fact a death tax treaty (as opposed to an income tax treaty) between Germany and the country where the property is located that treaty will likely assign the primary right to tax the value of real estate to the country where the property was located.  If that is the case then even if the 400K threshold were exceeded Germany would give you a credit against German inheritance taxes for the taxes imposed by the country where the property was located.   NB:  this would be true even if there were no inheritance tax treaty because German domestic tax law would give you the credit.      
  2. Taxation of Stock gains

      That will likely not be enough.   You need to substantiate:   a.    that you actually paid US taxes on dividends from whatever source b.    the amount of tax allocable to those dividends - as opposed to other types of income (e.g. long-term capital gains, interest, etc.)  b.    that a specified amount of the tax paid on those dividends is allocable to US-source dividends.   Since some US dividends are taxable at ordinary rates ("unqualified") and others ("qualified") dividends are taxed at a maximum 15% (20% for high-rollers) rate, if you have both types of US source dividends you will have to prove the US taxes allocable to each type.   Your US tax return itself will not help - except to get you past the threshold question as to whether you paid any US taxes at all because it does not break down income by source.  That you will have to do using brokerage statements, etc.  (Your tax preparer may or may not be able to help since many domestic preparers do not have a clue about US "source rules".   Moreover, the FA may insist on proof that your copy of your tax return truly reflects your US tax liability.  There being no "Bescheid" in the US tax system, you may have to obtain a return transcript from the IRS to prove that the IRS actually received your return and processed it with the same results as those shown on your copy.  (This, by the way, can be easily done online at the IRS website and because it is fully automated you'll have the transcript in about 4-6 weeks.)   If you were taxed on unqualified dividends, you will need to show the allocation of your tax on ordinary income items to the amount of your US-source unqualified dividends that were included in your taxable income.   If you were taxed on qualified dividends or had long-term capital gains, your US tax is computed using the "Qualified Dividends and Capital Gains Tax Worksheet".  That document/form will not appear on either your own return or the IRS transcript.  If you used software to do your taxes (or a preparer) the software will usually allow this computation to be printed out.  You can then use that to allocate the tax numbers it shows to the US-source qualified dividends.   Simple, no?  
  3. Flatex dumps US citizens

    To whom it may concern:   Citing the intolerable burden of dealing with US tax and regulatory authority Flatex has given (at least one of) its US citizen/person clients ordinary notice of termination effective as of the end of February 2022.  
  4. How do I Register myself in a State (USA)?

    @thrall   The authority for US citizens who are not residents of any state to nevertheless vote for candidates for FEDERAL offices (e.g. Congress, President) in a particular state or district is the Uniformed and Overseas Citizens Absentee Voting Act.   Voter registration in a particular state or district for those who have never lived anywhere in the US can be a sticky wicket and is highly dependent upon the voter registration rules in individual states.   Texas, for example, will not allow registration based upon the prior Texas residence of an overseas US citizen's parents even though the parents themselves would be allowed to register and vote in Texas under the UOCAVA.   For the (mostly) long and short of it:   From the link above: Children born outside the U.S. Voting rights vary by state for U.S. citizens born overseas who have never established residence in the United States. In some states, U.S. citizens 18 years or older who were born abroad but have never resided in the U.S. are eligible to vote absentee. If neither of your parents is from one of these states, it is possible that you do not currently have voting rights. However, additional states are working to pass legislation to allow citizens born overseas who have never established residency in the U.S. to vote in the state in which their parents are eligible.        
  5. Birth Certificate for Child

    Sheesh!   Talk about motivation for just living in sin!   My hat's off to ArunSharma for this display of world-class tenacity.  
  6. Do you hire someone to read your mail

    Won't help understanding the substance but at least you can be confounded in your own language for as little as € 6 a month:  
  7. Obtaining Funeral Costs from a Deceased Person's Estate

      Yep.   Please note:  You do not CLAIM a German inheritance.  If you are named as a co-heir on the Erbschein you will share in the decedent's liabilities and there is an assumption in Germany that you ACCEPT the inheritance - regardless of whether you or someone else has applied for the Erbschein.  Unless it is already too late, you can avoid this result only by a timely disclaimer (Ausschlag) or by applying for "Verwaltung" - essentially a means to limit your liability to the value of the decedent's assets, if any.   Read all about it here:    
  8. Obtaining Funeral Costs from a Deceased Person's Estate

    @Stuart O   Here is the German law with commentary that governs your claim to reimbursement of funeral costs:   Note that other than a determination of the decedent's heirs - which determines who has the responsibility to reimburse you - the German court has no role to play in this matter, i.e. no knowledge much less power to dispose of the decedent's assets and liabilities.   If you are the only heir, you will eat the costs but will own the decedent's assets - less the value of the decedent's liabilities.   If you are one of several heirs, then you will share the decedent's assets and liabilities with your fellow heirs and may seek pro rata reimbursement from them for their share of your costs.
  9. Lawyer for inheritance advice, prices?

      You might want to start by reading the last page of this thread here and then either continue it or initiate a new one:      
  10. Child capital gains, ETF, PFIC regulations

      Indeed.   The savings must be enough to offset the costs of effectively terminating your German residence under both §§ 8 and 9 of the AO (Fiscal Code).   Not easy and not cheap.  
  11. Child capital gains, ETF, PFIC regulations

      It's not.   § 49 EStG lists the items of income upon which a non-resident of Germany can be taxed under German domestic tax law.    The list does not include gain from the sale of common stock or corporate bonds regardless of the domicile of the corporate issuer. Moreover, if the country of residence has a tax treaty with Germany the provisions of that treaty will almost certainly grant the country of residence the exclusive right to tax such gains.   There are two major exceptions I am aware of but they are unlikely to affect most individuals:   1.  gains from the sale of a greater than 1% interest in a German domestic corporation can be considered business income taxable to a non-resident seller.   2.  gains from the sale of certain securities that hold German real estate interests can be taxed as if they were real estate equivalents.  
  12. Lawyer for inheritance advice, prices?

    OK.  There is an important distinction between "overseas" estate and inheritance legal issues, which could easily involve one or more foreign legal systems (and the involvement of foreign lawyers) and tax issues, which will almost always involve exclusively domestic, i.e. German, tax law and either a German tax lawyer or - usually cheaper:  a Steuerberater.   Why don't you pose your question on TT's "Finance" forum and see what responses are elicited for free.      
  13. Lawyer for inheritance advice, prices?

    Why do you think you need a German lawyer's advice?   Inheritance law is highly localized.   If by "overseas estates" you are referring to the estate of a decedent or "decedent-to-be" who lives outside Germany and/or whose property (real or personal) is located in another country, you will likely find that there is no German lawyer competent to advise you on the laws of the foreign jurisdiction whose laws will govern succession to that person's "overseas estate".    Incompetence, of course, will not stop the German lawyer from billing you so I suggest you first ensure you are asking the professional with the right qualifications; i.e. someone who is an expert in the applicable law.        
  14. Fund taxation in 2018 and "fiktive Veräußerung"

      Indeed.   Not only that but totalitarian governments could also - theoretically - mandate spending on certain government favored objects in an effort to "steer" an economy. It could enforce such measures by digitally slapping a "spend or forfeit" charge on some portion of an individual/entity's digital currency account balance.   The problem for such totalitarian governments is, of course, that it requires a hermetically closed system.  Foreign currencies and foreign-sited wealth and the freedom to tap it or the freedom to expatriate to tap it would be the bane of such a government's existence.  North Korea - even without a digital currency - comes to mind.   Although digital currencies would have enormous potential for abuse there is also enormous beneficial potential albeit one that can only be realized at the cost of huge disruptions - especially in the banking and financial services industries. The tax advisory and accounting professions could theoretically even be rendered obsolete.          
  15. Fund taxation in 2018 and "fiktive Veräußerung"

      All kidding aside, if Germany (or the EU or other governments) introduces a digital currency that completely replaces physical currency or dematerialized versions of it held by 3d party intermediaries (e.g. banks, insurance companies, etc.) it could - theoretically - control not only the values received in that currency by each and every individual and entity but also whether, how much and when those values could be spent or converted to some other country's currency.   This nightmarish or utopian (depending upon your outlook) scenario is now within the technological reach of governments worldwide and China, for one, appears to be making big strides in that direction.