applepenpineapple

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About applepenpineapple

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  • Location Germany
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  1. Grundfreibetrag when moving abroad part year

    I entered some numbers into Elster Online and it gave some solutions to my questions, although I don't know if it's correct.   Elster Online seems to give the full Grundfreibetrag and Pauschale even if I enter part year residence in Anlage WA-ESt. Günstigerprüfung seems to work together with Progressionsvorbehalt from line 6 Anlage WA-ESt. A large negative number in line 6 can wipe out all German tax to zero (even the German tax on investment income), by using Günstigerprüfung to move investment income into ordinary income, so that a negative Progressionsvorbehalt from line 6 can affect all types of income. It seems to work even if the Günstigerprüfung would be more expensive had there been no negative WA-ESt.  Seems like a good case to realize some capital losses after leaving Germany, assuming Elster Online is doing it right (unless it's completely wrong).   Instead of WA-ESt, if I enter a large negative number into Anlage AUS line 36 (Nach DBA steuerfreie Einkünfte / Progressionsvorbehalt), for use with foreign real property (e.g. land use), Elster Online also zeros the taxes.   The Bayern Finanzamt online Progressionsvorbehalt calculator also allows negative amounts to reduce taxes to zero. https://www.finanzamt.bayern.de/Informationen/Steuerinfos/Steuerberechnung/Progressionsvorbehalt/Ergebnis.php?JAHR=2023&TARIF=1&ZVE=20000&PE=-20000&submit=calculate+income+tax&f=LfSt&c=n&d=x&t=x
  2. Owing self-employment tax to the U.S.

    I just noticed that the mailing addresses is different than their street addresses. Each Rentenversicherung office has a unique post code without a street to receive documents, which is listed on each office's website. The letter which came with the exemption form also lists it on the letterhead.   For example, the Lübeck office street address is: Ziegelstr. 150 23556 Lübeck   But the mailing address is: 23544 Lübeck   https://www.deutsche-rentenversicherung.de/Nord/DE/Ueber-uns/Adressen-Anfahrt/adressen-anfahrt_node.html
  3. Grundfreibetrag when moving abroad part year

    In a scenario when moving out of Germany during part of the year, how is the 10k Grundfreibetrag on self employment income and the 801€ Pauschale on investment income applied or calculated? Is it fully, partially, or none at all?   How would those deductions work together with an election to tax investment income as earned income (Günstigerprüfung), in case the effective tax rate would be less? Is it checkbox line 4 on Anlage KAP? Finanzamt only applies if it's actually cheaper?   I assume the amounts entered into Anlage WA-ESt of income from the period after moving out of Germany would have a progression effect on such an election?   Is the extended unlimited liability after moving abroad out of Germany only for German citizens and some special cases, and not for a typical foreign national self employed person?
  4.   I see in 865(g)(2) the rule about 10% foreign tax paid on the gain, for whether or not the sale of stocks would count as US or foreign sourced.   I can think of 3 cases where the German tax is less than 10%.   1) gains from sales of stock acquired before 2009. As it's 0% rated in Germany, would this then go into re-sourced by treaty category?     2) gains from sales of stock with wash sale loss disallowed. As Germany has no wash sale rule, the wash sale loss disallowed by the US would count towards German calculations, lowering the effective tax rate.   For example: 20,000 proceeds 15,000 cost -------------- 5,000 gross profit -4,000 wash sale disallowed ------------------- 1,000 net profit on German tax return 5,000 net profit on US tax return ----------------------- 26.375% tax in Germany = 263.75 Effective tax rate = 263.75 / 5,000 = 5.275%   As less than 10% was actually paid "with respect to that gain" (which gain? The 1,000 or 5,000?), would it have to be re-sourced by treaty?     3) Then another problem happens to the calculation of the effective tax rate and the allocation of foreign taxes when you either apply this to the aggregate gain from all properties, or to each separate property.          
  5. Owing self-employment tax to the U.S.

    If anyone wants updated mailing addresses for requesting the form, they're probably listed in this PDF. https://www.deutsche-rentenversicherung.de/DRV/DE/Rente/Ausland/Ansprechpartner-und-Verbindungsstellen/USA/USA.html   Oddly, for Deutsche Rentenversicherung Nord, they used to send me the form from Friedrich-Ebert-Damm 245, 22159 Hamburg. But last year's was sent from Zeigelstr. 150, 23556 Lübeck, even though the stamp on the form says Frierich-Ebert-Damm, and the person who signed the form has a 040 telephone number for Hamburg printed on the letter.   So I'm not sure whether to send this year's request to Hamburg or Lübeck. The PDF only lists Lübeck but not Hamburg.    
  6.  @PandaMunich  says to include all income received in the partial year before moving to or after moving away from Germany, on Anlage WA-ESt line 6.    
  7. What's the process and paperwork for reporting zero VAT sales to customers who take the goods out of the EU on a passenger flight in their baggage?   And the customer is: (a) consumer for private use (b) entrepreneur for business use   § 6 (1) 2 UStG seems to relate to both cases § 6 (3a) UStG and § 17 UStDV (im nichtkommerziellen Reiseverkehr) seems to relate only to case (a) with a consumer § 13 (5) UStDV seems to relate to case (b) with an entrepreneur (and maybe § 9 UStDV)     For case (a): I've read that you first invoice the consumer with VAT give them the Ausfuhrbescheinigung form they show the baggage, invoice, and form to the customs office at the airport of exit the customs agent stamps the form the consumer posts the stamped form back to you (must be original?) you refund the customer the VAT   Finally, do you need to send this stamped form to the Finanzamt, and do any special reporting, or do you simply only report the tax free amount in Kennzahl 43 of the USt-VA?     If you already reported the initial payment incl. VAT in Kennzahl 81 (Steuerpflichtige Umsätze zum Steuersatz von 19 Prozent) before receiving the stamped form from the customer, then in the next filing, do you simply input a negative number in Kennzahl 81, and then report the positive number in Kennzahl 43?       For case (b): Should you invoice without VAT? File the Ausfuhranmeldung with ATLAS and give the MRN barcode to the customer, even if value is under 1000€? Would the customs office at the passenger airport be able to process the MRN?       Typically, if I ship it with a courier, I would invoice without VAT, and keep records of the waybill, tracking, and delivery confirmation. If the package value is over 1000€ but below 3000€, then I also file the Ausfuhranmeldung, insert the MRN barcode with the waybill, and then print out the Ausgangsvermerk that's issued when the package exits the EU.    
  8.       Regarding separate loss pots for German taxes, I guess losses from conventional stocks and ETFs (Aktienfonds, Anlage KAP-INV) cannot be mixed with each other.
  9.   Sorry, I did not complete my sentence. What I meant about the withholding tax is that on the papers that come with the 1099 forms issued by US brokerage accounts, there is a page for "foreign income and foreign withholding tax". On this page, I've only seen interest and dividends paid by non-US companies. The interest at 0% tax, and dividends typically at 15% tax. I've never seen capital gains listed on this page.   So I was wondering if this page could be a hint about sourcing rules, if maybe interest paid by a US company should be US-sourced and assigned to the re-sourced by treaty category, since interest from foreign companies show up on that page, and if capital gains from sales of US stocks should be sourced to the recipients country of residence and assigned to the passive category, since capital gains from non-US companies don't show up on that page.  In this case, the US brokerage and ADR administrator assumes the account holder is a US citizen and US resident and withholds the 15% foreign tax on foreign dividends.   But that page appears to be informational, and doesn't seem to be officially part of the 1099 form, so I wouldn't rely on such assumptions. I would prefer to find the part of the US tax code that talk about the sourcing rules.
  10. As a resident in Germany, when claiming foreign tax credits from German taxes on capital gains that came from selling stocks of U.S. companies, do you put them into the re-sourced by treaty or the passive income category on the U.S. tax return?   An accountant previously told me that capital gains from stocks of U.S. companies should go into re-sourced category, along with U.S. interest. But recently I was told instead that any capital gains (which aren't from U.S. immovable property) regardless of where the paying company is established, should go into passive category, when the recipient is a resident of Germany. And that only U.S. interest would go into re-sourced category.   Is this correct, and why would U.S. capital gains and U.S. interest be treated as different categories?   I don't see a difference in their descriptions in the tax treaty. Both articles say these that are derived from a contracting state and paid to a recipient that is resident of the other contracting state may be taxed in the other contracting state (except for alienation of immovable property). No mention of sourcing.   The only thing I can think of is that maybe because withholding tax is taken from foreign interest and dividends, but not from foreign capital gains from sales of stocks.
  11. Does anyone know of a US SIM card that I can use in Germany to receive SMS text verification messages from US bank accounts, something that doesn't charge monthly fees and only charges for the minutes and text that you use, like how German prepaid cards work?   I used to simply give the banks my US Skype number, but recently they want to send a verification link or code by SMS, which Skype numbers can't receive if they're sent by SMS short code. So I'm going to ask a friend to buy a SIM from the US and mail it to me.   But I don't see any prepaid SIM cards that don't require you to buy a monthly plan with a monthly fee. The cheapest prepaid SIM card plan that I could find is Ultramobile (T-mobile) PayGo, which is $3 a month, with international roaming allowed.   However, I don't know if SMS short codes work while roaming internationally with the Ultramobile SIM card. I've read that some people were  not able to receive them with some of these prepaid SIM cards.