AlexCLE

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About AlexCLE

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Profile Information

  • Location Stuttgart
  • Nationality American
  • Hometown Cleveland
  • Gender Male
  • Year of birth 1982
  • Interests Working on cars, racing, woodwork, metalwork/fabrication, cycling, camping, family stuff.

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  1. liability with Einzelunternehmen

    I'm getting ready to start a small side business and was advised by an accountant to form a Einzelunternehmen rather than a UG to save on the notary costs. However I'm a little worried about the personal liability. Does that liability include, for example, being sued by a customer? Like if I sell a widget, it breaks for some reason, and this causes injury. Or would I be able to get insurance for this? Or is the liability only on any company debt?
  2. US capital gains tax on foreign property

    Also, when is a business considered NOT a Controlled Foreign Corporation? If I'm the sole owner of a GmbH is that enough to satisfy the CFC definition?
  3. US capital gains tax on foreign property

    Wow, morass is definitely a fitting word. If I buy the property as an individual do the PFIC rules still apply? To claim that I actively manage the property, how is this evaluated? Meaning, how many hours or Euros do I need to spend to claim it's active? Either way the foreign tax credit can reduce my US burden, right? I scheduled a call with a US CPA in a couple days. Hopefully that will add some clarity.
  4. I'm planning on buying a rental property here and holding it for >10 years so that the profits are not taxed (in Germany) when I sell it. However, this would still be considered taxable gains in the US, right? (I'm still a US citizen) Would it make sense to start a company and buy the property through the business? The gains would stay in the business and I would only take relatively small amounts out yearly as additional income and pay tax only on that in the US. Most of it would be reinvested into other properties.
  5. I'm getting ready to register a business and I see on the form that there is a section for your business name (1.Im Handels-, Genossenschafts- oder Vereinsregister , ggf. im Stiftungsverzeichnis eingetragener Name mit Rechtsform (bei GbR: Angabe der weiteren Gesellschafter)) and another section (3. Name des Geschäfts, wenn er vom eingetragenen Namen im Feld 1 abweicht (Geschäftsbezeichnung; z.B. Gaststätte zum grünen Baum, Friseur Haargenau))   Do I understand it right that this second section is something like a "doing business as" name like we have in the US? Is it possible to register more than one of these all under the same GmbH (from field 1)? Can this name then be used on invoices, websites, etc.?
  6. paying tax on business property rental?

    Thanks. What does the landlord do with paid tax? Is this passed directly to Finanzamt and then the landlord separately pays income tax on the net rental income?
  7. If a business rents an office/building do they need to pay 19% tax on the rental amount that goes the landlord? Is this a deductible expense? If you prepay Nebenkosten is it also taxed?
  8. I'm looking for a MIG welder that runs on 220V. I have a cheap LUX Tools right now and it's pretty bad. I can't tell what would be a "good" brand here. I had a 180 amp Lincoln Electric in the US that was really great. Any suggestions?
  9. Taxation on real estate investment

    I'm looking at buying a commercial property as an investment and wonder if it's more advantageous to do it as a German or US company. Eventually I'll go over this with an accountant or lawyer but wanted to see if someone has personal experience. If I do it as a German company I would like to keep the profits in the company for future reinvestment so I don't exceed the US's foreign earned income exclusion since I still file taxes there.   By the way, would anyone in real estate like to set up a chat sometime? I'd be curious to meet others that are doing this.
  10. I've seen some kids in what look like Scouting uniforms (boys and girls). What are these groups? I tried looking it up but it seems there are dozens of different groups. I'm not sure which are the dominant ones around here. I really enjoyed Boy Scouts growing up and would like to find something similar for my kids.
  11. We just signed a lease on a house and today while talking to the landlord he said something like, "By the way, we need to amend the contract because it was supposed to include that property tax and insurance is paid by the renter but it was left out by mistake." I kind of thought that Nebenkosten included the tax already but didn't have the contract to reference at the moment, and I've read that tenants paying the tax is common, but I haven't heard of property insurance being the tenant's responsibility. Is this the norm? We'll still need separate renters' insurance for our belongings, right? I don't want to sour the relationship right off the bat but I'd like to tell him "tough luck" since it's not in the contract.
  12. We moved to Stuttgart before the sale of our house was finalized in the US and now we need to sign the closing documents. The title company says we have to go to the US embassy to have them notarized, which seems excessive (because that would be a pain in the ass). Has anyone had a similar situation? Would there be a US notary at one of the local military bases that would do it? I'm not military or a government employee, though. Can a German notary do it?
  13. After spending some time looking at rentals and properties for sale, it seems like rental rates are disproportionately low compared to purchase prices. For example, an apartment in Stuttgart that sells for 400-500k euro might rent for only 1500/month. For the owner of the rental, that doesn't seem to make much sense; the rent barely covers a mortgage payment even if they put 50% down and have a 20 year loan, then add in maintenance and repairs along the way. What am I missing here? What's the incentive to buy vs. rent? Here in Ohio, a house that's worth $400,000 would rent for $2500. Do the owners of rentals tend to be large companies that might own dozens of properties? Or is it a mix with individuals owners?