Straightpoop

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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. Buying index funds in Germany

    @someotherguy   It is, thankfully, out of date.   There have been several threads on TT in which the new régime of fonds taxation has been discussed but cannot point you to one right off hand.   It's still a pain in the butt to own foreign fonds - especially those held in foreign accounts (e.g. the USA) - but if you're willing to do the accounting and other scut work that your German brokerage would otherwise do for free, you at least don't get clobbered with the old pauschalierte Besteuerung as in pre-2018.   Many explanatory sites in German though.
  2. Advice needed: Mannheim VS Munich

    I have no experience living in Stuttgart or Munich but my experience of living in and around Mannheim was very positive. Few architectural monuments but (back in the day, anyway) many high quality restaurants (several with Michelin stars), vibrant cultural life - both classical & pop and a welcoming cosmopolitan populace.  Unlike Munich or S everything highly centralized in the Quadratstadt and easy rail/autobahn connections to just about everywhere; especially Alsace & Lorraine.   And a shit-load less expensive than HD, M & S.   Check it out.      
  3. Working in PL, Living in DE - Taxes

    In this day and age a situation like yours should not be uncommon.   It may be administratively awkward but I would think it is pretty basic; something your employer's HR people should be well-equipped to handle unless it is a small firm that lacks cross-border experience.   In any event it is up them - and you - to coordinate a "hand-off" from Polish to German income taxation and to handle social security contribution obligations as between the two countries.    
  4. Working in PL, Living in DE - Taxes

    See Article 15 of the tax treaty between Germany and Poland:   https://datenbank.nwb.de/Dokument/Anzeigen/151423/   Once you have worked in DE for more than 183 days for your PL employer, you will owe taxes on that income exclusively to Germany.  
  5. Speculation period start date

      I suspect that your Notar was not focused on the issue of when the Spekulationsfrist of § 23 EStG begins but rather, on the fact that the transfer of title (ownership) to you was subject to the suspensive condition (aufschiebende Bedingung) that you pay the purchase price within the contractually mandated time.   That, of course, was accurate advice.   However, assuming you paid the purchase price as contractually agreed, the legal commentaries and well-settled case law interpreting § 23 EStG seem to agree that the Spekulationsfrist (the 10-year holding period) begins on the date you contractually bound yourself to pay the purchase price in exchange for the seller's contractual commitment - made that same date - to deliver title; i.e. on the purchase contract closing/execution/signing date.   If you failed to timely pay and the seller had to take you to court to enforce the contract and after protracted litigation you finally coughed up the coin - maybe even years later - your 10-year holding period would still begin as of the date you contractually committed to buy.   An excellent summary of the issue may be found here:   https://www.haufe.de/personal/haufe-personal-office-platin/frotschergeurts-estg-23-private-veraeusserungsgeschaefte-44-zeitpunkt-der-veraeusserung-und-zeitpunkt-der-anschaffung_idesk_PI42323_HI2095010.html  
  6. Tax filing - Depreciation disallowed on empty rental property

      The FA has accurately stated the law.  The date of Fertigstellung governs for purposes of depreciation.   The German rule on depreciation of vacant rentals appears to be nearly identical to the US practice:  so long as the property is being held out for rent, i.e. ready for a tenant, advertised or otherwise seeking a tenant as well as demonstrating a clear intent to rent, the ordinary expenses associated with a rental property may be deducted.   Accordingly, your depreciation begin date was 4.11.2019 and in my inexpert opinion I believe the FA erred in denying you depreciation from that date.   Here is a relatively old but thorough treatment of the subject that focuses on borderline cases. (Yours is not a borderline case.  It is pretty crystal clear.)   https://www.steuer-gonze.de/web/images/stories/Aktuelle_Steuertipps/Fehlende-Vermietungsabsicht-WZ.pdf  
  7. German citizenship from sofa status?

      Yes, you may apply.   No, you will not be eligible for citizenship.   Here are the requirements: https://www.bamf.de/DE/Themen/Integration/ZugewanderteTeilnehmende/Einbuergerung/einbuergerung-node.html    
  8. US capital gains tax on foreign property

      Yep.
  9.   That's the question, isn't it?   The answer depends upon how German tax law classifies your SMLLC and your relationship to it:  corporation/shareholder/employee/independent contractor or partnership/partner/employee/independent contractor.   German taxes will also depend upon where and how the SMLCC conducted its business operations to earn that money and whether, when and to whom it disbursed those profits in the form of cash.   It might be helpful if you were to describe your purpose in creating these things. That might help you to reconsider whether the administrative and financial burden of owning them makes it worth your while.  
  10.   Indeed but few arrive with an LLC hanging around their necks and those that do typically have not a clue as to what that might portend.   You should give yourself a pat on the back for at least asking.
  11.   Nope.  Just an educated guess.
  12.   Whose profit?   Taxes to which country or countries?    
  13.   No reason to question much less dispute that.   The question is how you and they will be taxed in Germany.   To answer that question, you would have to provide copies of the LLCs' articles of association by-laws, state of incorporation, a description of their business activities, location of operations, personnel, etc.   You would then have to analyze that and other relevant information and apply the factors set forth in BMF v. 19.03.2004 - IV B 4 - S 1301 USA - 22/04 https://datenbank.nwb.de/Dokument/Anzeigen/129083/ plus the various tax court cases that have addressed the issue generally and have applied the BMF's factors.   In America, you just "check the box" on the ol' entity classification form and you're done.   In  Germany you spend a whopping sum on translation into German followed by legal analysis to obtain an "educated guess" followed by a roll of the legal dice.   If your US Tax lawyer did all that and came up with the answer you reported in your OP, then my hat is off to him or her.   If they didn't do all that and just guessed, then I hope for your sake (s)he guessed right.  
  14.   You did not provide any facts needed to question this advice.
  15. Lawyer expert in Tax and Banking Law

    1st a correction:  It is § 43a of the EStG that governs the obligation to transfer cost basis data - but only between German banks.  So far as I know there is no requirement for the Italian bank to do so.   Until 2011 when US banks were required to report cost basis to the IRS, cost basis info almost never transferred from one US bank to another. Instead, the books of the transferee bank would show the transfer date as the acquisition date and the market price on that data as the cost basis.   This same procedure used to apply in Germany until the introduction of the Abgeltungssteuer effective 1.1.2009.   The conduct of the banks as you describe it seems to me to be unobjectionable.  By obtaining the Italian basis information for substantiation you will be able recoup the excess amount withheld by the German bank on your 2020 tax return. You lose the time value of that money but in a negative interest rate environment not a big deal.