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About endsee

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  • Location Berlin
  • Nationality American
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  1. How are joint accounts (outside of Germany) taxed?

      Hi @PandaMunich- I hope you are well. I saw this thread and your message here and have a quick question regarding this joint account situation that I am hoping you can answer for me.  I have Gemeinschaftskonto with my parent outside of Germany. This account was created months ago but has never been used. However, just a few days ago, my parent accidentally transferred a significant sum of shares of stock from their personal account to the joint account while meaning to transfer it to a separate account. The shares only remained in the Gemeinschaftskonto for around 24 to 48 hours and then immediately transferred to the correct individual account.    If the value of the shares of stock exceeds the 400,000 EUR limit, did my parent make a very expensive mistake on my behalf? 
  2. Hello @Zitzelsberger, I have reached out to your office earlier this year to inquire about your services and was informed that there is a waitlist. Would you happen to have any recommendations on someone you could forward me to? Thank you in advance for your help and happy holidays!
  3. Taxes on capital gains from stocks

    @PandaMunich - As a US citizen who has been living in Germany for the last few years, I have a few questions.    I currently have an investment account in the US and my understanding from reading this thread and your amazing input is the following: Any capital gains from the US investment account over 801 EUR (Single) is taxed as 26.375% (No Church Tax) in Germany  The capital gains from the US investment account that is taxed in Germany can be included as part of the IRS US Foreign Earned Income Exclusion and not be taxed again unless you are over the threshold  File German taxes first, and then the US taxes - in that case, if the US capital gains are already declared in the German taxes, how would it be categorized when filing taxes with the IRS?  After reading further and learning more about the Vorabpauschale - a tax in Germany for funds that is not sold, I have a feeling that I should hire an expert for this but the one's that were recommended in this forum said there's a waitlist.    To flip this around, I received some stock options from my work in a Germany. When the stock vests and I decide to sell it, will the above scenario still play out or will the tax implications in the US be different?  For example, if I receive 50 x 100 EUR (On January 1st, 2022) = 5,000 EUR in stock options that I decide to sell a year later on January 1st, 2023 when the stock has increased by 20% so 50 x 120 EUR = 6,000 EUR. Will I be taxed on the 1,000 EUR capital gain or the full 6,000 EUR amount since I never originally purchased the stock?
  4. As a US Citizen who has been living in Germany for the last couple of years and intends to get a mortgage here sometime next year, I have been doing research on this topic and came across the foreign exchange rate gain when performing a remortgage or capital repayment. For example:      € $ Approx. Mortgage Valued in € €350,000   Exchange Rate at 14/12/2021 1.13   Approx. Mortgage Value in $   $395,500       Approx. Mortgage Value in € €350,000   Exchange Rate at 14/12/2031 0.98   Approx. Mortgage Value in $   $343,000       Foreign Exchange Rate Gain    $52,500       Tax Charge at Marginal Rate of 28%   $14,700 In this case, if the exchange rate between the Euro = USD changes, the IRS considers that when I took out the mortgage of €350,000 ($395,500), 10 years down the line, since the original €350,000 mortgage would be worth $343,000 in USD due to the exchange rate change - I would be liable for the $52,500.    I have a few questions related to this:   If the original value is €350,000 in 2021, wouldn't the remaining price in the future be less due to the monthly payments made towards the mortgage? Why does the IRS still consider the original mortgage value in the future? My understanding of German mortgages is that repayment is only possible once every year to a maximum of 5% of the initial loan value - by taking the above example of €350,000, the €17,500 could lead to a IRS tax liability if the dollar becomes stronger against the Euro and the foreign exchange rate gain exceeds the de minims amount of over $200 - is my understanding correct?  My understanding is that the foreign exchange rate gain would be considered as "Other Income" - however, would this "Other Income" be eligible as part of the Foreign Earned Income Exclusion ($112,000 in 2022) with the IRS?  My understanding is that after 10 years, even if you are on a 15 or 20 year mortgage, you have the ability to refinance in Germany - would it make sense to consider a longer mortgage period as this would provide flexibility to refinance during the period after the 10 years if the USD to Euro exchange rate is in a favorable condition? As opposed to choosing a 10 year mortgage where  I found a relevant thread here that's been quite useful - https://www.toytowngermany.com/forum/topic/387627-irs-income-taxes-and-euro-denominated-mortages-section-988/   https://www.ustaxfs.com/foreign-mortgage-repayment-exchange-rate-gain/
  5. @PandaMunich - thank you very much for your help. I really appreciate it.  
  6.   Understood - so even if were to receive a gift of over 400k euros in the US to my US bank account, I will still be liable for the German gift tax by virtue due to the fact that I am a current resident of Germany and it will still factor in to the 10 year 400k allowance for the tax-free amount, correct?      To confirm, after the money is deposited into my German bank account, I would need to report the payment to the Bundesbank with Form Z4 via the website of the Deutsche Bundesbank - https://www.bundesbank.de/resource/blob/804692/631d8f750051a0d462cec236c9696a4b/mL/einstieg-in-das-meldewesen-data.pdf   In addition to filling out the Gift Tax form here and submitting it to my local Finanzamt -https://www.berlin.de/sen/finanzen/steuern/downloads/artikel.9856.php   In the above link, what is the difference between Schenkungsteuererklärung and the Anzeige einer Schenkung?       
  7.   Understood, sorry for my misunderstanding there.    That is unfortunate to hear as it seems that if I were to receive 550k euro, then 150k euro will be taxed at 11% as I am in Tax Class 1 - according to the link here https://www.german-probate-lawyer.com/en/detail/article/taxation-of-gifts-in-germany-4250.html essentially 16,5k euros will be taken for tax.     
  8.   Thank you all for your help and assistance here - really appreciated.    Based on the link you provided, it is not clear to me if the 400k euro between a Parent -> Child is reset every year.    If my parent would like to send me 550k euros, is it recommend to first send 400k euros this year in 2021, and then the remaining 150k euros in 2022?    My understanding is that for 10 years, the maximum tax free gift amount is 1.6m Euros.     
  9. Hi everyone, I'm interested in starting the process to purchase an apartment in Berlin in the coming months and have a few questions.    As part of the down payment for the mortgage, my parents have offered to transfer me some money to help. With this in mind, what would be the best way to go about this to eliminate any additional taxes that may have to be paid? Specifically from transferring money from the US to Germany.    I'm assuming that I would have to have the cash in my account when applying for any mortgage to receive a pre-approval from the bank.    I hope to hear some comments from expats who have gone through this situation in recent years. Thank you!