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Found 29 results

  1. Hello,   I know capital loss on individual stocks can only be used to offset capital gains from individual stocks . My question is, what if the capital loss is on a mini-future contract which is open ended (no expiry date), with a single stock as underlying.  Can you offset this loss against other capital gains, or again only against gains from individual stocks? The product has a stop loss point when it expires worthless, so I assume it doesn't hit this level, otherwise with the new law I refer below it will be not eligable for loss deduction more than 10,000 eur/year.   Here is an example of such a mini-future contract: https://keyinvest-ch-en.ubs.com/product/detail/index/isin/CH0548307948   Also there is a new law passed in December 2019, setting a limit of 10,000 euros/year per loss ofset, from certain certificates and futures, but as I understand only if these have an specific expiry date, so that this new law would not be covering the mini-future described above, is that right?   Thank you!
  2. German annual tax with uk salary

    hello   I am living in Germany and receiving a salary from the uk to my uk bank account.   I am trying to fill out the form  "Anlage N- AUS" online with ELSTER, however I am not 100% sure, if I am doing it correctly.  Could someone walk me through Anlage N-AUS. I speak english and german. thanks      
  3. Tax swap (shift) in Germany

    Hello,   my question is simple. Is Tax swap (or Tax shift) possible in Germany?   DEFINITION of Tax Swap: Tax swap is a method of crystallizing capital losses by selling losing positions and buying companies within similar industries that have similar fundamentals. https://www.investopedia.com/terms/t/taxswap.asp   Thanks and best regards, Jaime
  4. Hi!    I posted previously about wanting to move back to the UK despite the current crisis and have now been offered a job in the UK - starting July 1st. I'm very hopeful I can negotiate my notice period here in Germany down from 3 months, as I'm currently on 50% Kurzarbeit and there is not much for me to do at all.. So taking me back up to 100% for a month should be more than enough time to prep for my departure - I read that they I can't be on Kurzarbeit during my Kündigungsfrist, please correct me if this is wrong!   My question though is that if I accept a job in the UK, paying via PAYE into my UK bank account - do I need to physically leave Germany before the 1st July in order to be tax resident in the UK? Or is there an acceptable overlay where we can be wrapping things up here in Germany (I'm talking 2-3 weeks, not months) but I can already be working for my UK employer?   I've been living and working in Germany since Nov 2016.   Appreciate any advice, want to make sure we don't make any critical errors here!    Cheers,   Rebecca
  5. Hello Toytown,    I used to be a member way back when in 2010 when I moved to Germany and I’m happy to say I am back, albeit with a new account.    I have a question regarding “Spekulationssteuer” and “Verschenkung” related to property and would really appreciate your help and advice.    In 2016 my wife’s parents purchased a house which my wife and I live in and have done so uninterrupted since 2016. My wife’s parents are planning to gift the house to us “Verschenkung” and we are planning to sell the house due to relocation back to UK.    Now to the point, my wife’s parents haven’t owned the house for 10 years, and when we take it over it will have been in our ownership and previously her parents’ ownership for a total of 4 years. However, as previously said my wife and I have lived her as our main residence since purchasing the house.    Can we therefore avoid paying Spekulationssteuer / capital gains tax?  If we can’t, could we move to UK first and complete the sale as UK tax residents and avoid the tax that way?    Thank you so much in advance, happy to be back!    All the best,  David 
  6. I am living in Germany and have a regular income from a company, and would like to do tax declaration for year 2018.   In 2018, I used a broker to trade stocks/shares. My broker is based in UK and Cyprus. I traded thousands of things (buy and sell positions in: Forex, stocks, commodities, futures). The dividend i earned were negligible, as i mostly traded intraday. In total i lost a few hundred Euros.    I've read here that i should enter these information in Anlage KAP. (1) What is the difference between line 4 and 5? which one i should choose?   Somehow it is impossible to separate all of the thousand trades and write them in the lines 7-11.  (2) Can i write only the lost amount in line 10 or 11? (3) Some of my trades were "buy positions" and some of them were "sell position". What is the difference between lines 10 and 11?   Thanks in advance. 
  7. I'm a US citizen, tax resident in Germany and looking to get a euro denominated mortgage to buy a primary residence, I do not want to use an LLC (QBI). In the eyes of the IRS I would be taking out a long term short position on the US Dollar, this is due to IRC legislation that prevents individuals from declaring a mortgage in a non-functional currency, this means my mortgage counts as a section 988 transaction and any unrealized gains due to currency fluctuations are taxed as ordinary income.   Almost all examples that I have come across deal with "interest only" mortgages where there are no capital repayments during the life of the mortgage, and only when the house is sold do the taxpayers find that they have to pay income tax on the phantom gain resulting from the change in the exchange rate between the USD and the currency the mortgage was taken out in; even if no actual gain was realised.   An example from this site: [3]     £ $ Approx. Mortgage Valued in £ 250,000   Exchange Rate at 16/12/2005 1.9267   Approx. Mortgage Value in $   481,675       Approx. Mortgage Value in £ 250,000   Exchange Rate at 07/07/2013 1.4877   Approx. Mortgage Value in $   371,925       Foreign Exchange Rate Gain    109,750       Tax Charge at Marginal Rate of 28%   30,730   My issue with publicly available resources on section 988 is that it is geared towards forex traders, where the transaction is disposed in its entirety at the end and not repaid in partial amounts, this confusion is present in most sources (i.e. does repayment mean in full? or partial?). What I'm afraid of is getting a mortgage and repaying it gradually, then having to wait until the exchange rate is close to what was when I took out the mortgage to then pay the final instalment or face a massive tax bill on a phantom gain. My theory is that i can take out a euro denominated mortgage, make repayments on a monthly basis and then only if my phantom gains from the exchange rate exceed the standard deduction for that tax year would I have to pay any tax. This means that over the years if the dollar appreciates I could adjust my payments accordingly.   So...   Given an annuity mortgage in a non-functional currency:   1. Would monthly capital repayments during a tax year incur income tax on a phantom gain? 2. Can a phantom gain be reduced with the standard deduction? 3. Would i report the net gains and losses from multiple capital repayments in a year or are all losses ignored? 4. Would this be reported on IRS form 8949?   (i have emailed a couple of tax advisors but not heard anything back yet) sources: [1] https://expatriates.stackexchange.com/questions/8157/aussie-expat-living-in-us-taxed-on-paying-off-foreign-mortgage  (the only link where multiple repayments were talked about) [2] https://www.ustaxfs.com/foreign-mortgage-repayment-exchange-rate-gain/ [3] https://blog.taxadvisorypartnership.com/blog/us-tax/foreign-mortgage-exchange-rate-gain [4] https://renounceuscitizenship.wordpress.com/2012/10/11/how-fluctuating-fx-rates-generate-capital-gains-taxes-on-the-discharge-of-debt-us-citizens-abroad/ [5] https://www.andrewmitchel.com/charts/rr_90_79.pdf  
  8. US expat tax filing and German pension funds

    Hi, I am a US american/german dual citizen that has been living in germany for 20 years. recently I found out about my tax filing obligations in the US and am planning on applying for the streamlined offshore procedure soon and have a few questions related to that. I know that many questions on tax returns for US americans abroad have already been asked and solved in these forums so I hope I haven't missed the answers! The main problem is that I am VERY confused about my pension plan and how to report it. I have a "fondsgebundene Rente", which means that it is a private pension scheme (no employee contributions) whereby I make monthly payments to the company (Ergo versicherung) who invests the money in various stocks, bonds whatever (apparently a company secret). The idea is that hopefully the money will grow that way and I will get a larger pension than if I put it away in a savings account. I have the option of buying back the account prior to reaching pension age, but at a huge loss. Otherwise, there is no option for me to withdraw any partial amount of the savings before retirement. From my reading, I guess this would be some kind of an IRA, though I think a requirement for designating it as an IRA is that the managing company has to be in the US or part of an international company with a branch in the US? but not sure about that.Or is it a foreign trust? I am also muddled about whether I need to declare anything at all about this as I do not receive any payments from it but am only paying in at the moment. I understand that with an IRA, people would want to declare the payments as a deduction from income. because my income is so low, the foreign earned income exclusion gets rid of all my taxable income so I don't have any taxable income. So, I'm not interested in taking advantage of any further deductions at the moment. I just want to make sure that I'm declaring what I need to by law. if it is indeed a foreign trust, then there are apprently potentially serious consequences for not declaring it as such in the FBAR and for not filing the 3520 form on foreign trusts. Anybody have any ideas about this? I'd be extremely grateful for any help! or maybe someone has a reference for somebody with reasonable rates that could just advise me on this one issue? I'm trying to get most things done by myself to save money, but have not been able to figure this one out!
  9. Can anyone please recommend me an agency (online or whatever else) for filing my back taxes to the US with the fast track amnestry program? I've been paying in Europe for years now and was stupid...I didn't think I had to since I was under the double taxation limits.   I've been getting quotes but the amounts are all over the place, sometimes crazy high more than whatever penalties I could get. My situation tax wise is straight forward, I don't own any property or anything. I'm just looking to file the paperwork without breaking the bank to do it.   Any recommendations would be great well apperciated!
  10. tax question

    Last year i started a new job for 2200 gross that came to 1600 net. 2 months ago i received 200 eur more as a bonus on my gross pay coming to 2400 but that seemed to have incised my tax percentage since now i receive only 1647 eur net. is this supposed to hapen and i am supposed to be taxed at almost 42% of my paycheck for the money i make. i am tax class one
  11. Declare small income? (non-resident)

    Hi,   I'm a former resident of Germany and now on the other side of the planet and need some help from the collective knowledge of the trusty TT army.   I'd like to provide a foreign company (UK based) with a service and they can only pay in GBP, EUR or USD, bank account or Paypal. I still have my German bank account (with address with relatives) and think I prefer that option rather than lose money through the terrible Paypal conversion rates.   Question is then, for this small income of about 50 EUR a month, do I have an obligation to the Finanzamt? I properly deregistered when I left Germany.   Thanks for your input!      
  12. I need to save my back from permanent destruction and want to get a proper office chair while I work from home. Lead times on new office chairs from Amazon are ridiculous but there are a few good offers on eBay Kleinanzeigen. Would I be able to write off the cost on my next taxes if I got the seller to write a receipt for it?
  13. Hello, this is my first year filing German / USA taxes and I could use some direction. I am a US Citizen living & working in Germany, under EU citizenship (dual citizen with an EU country & US). I earned a German salary from an employer this year and have paid taxes to Germany. Of course I need to file also in the US, but I will reduce my US tax liability to ~ 0$ by claiming the foreign earned income exclusion this year as my income is less than $100K. There are two points though that I am a bit confused on if someone could please provide some insight:   -- I have interest income from savings in a US bank of approx 500 USD. As I understand, I must report this to Germany. When I report this to Germany, it is below the 801EUR limit hence I do not pay tax on it; however, am I then to also report the same to the US and state that I paid no tax on it and then be required to pay tax to the US instead?   -- I am part of an LLC partnership in the US, my brother and I, very small business but we just use the LLC to share tax burden. Is the income/loss from this LLC reported to Germany also and added/subtracted to my German net income, or is it strictly reported in the US only? If I report a loss from the LLC in Form AUS it will reduce my German income, which lowers my taxable income and increases my German tax return, which I understand is the right way...but then how do I report this loss to the US? I already lowered my German tax with the loss, so I would expect I cannot double dip and lower my US tax also with it?    Thank you very much for the guidance.   Chris
  14. VLH effective tax calculation

    I came across this post and was expecting something like this when VLH was preparing our tax return https://www.toytowngermany.com/forum/topic/200856-filing-a-tax-return-help-on-how-to-file/?do=findComment&comment=3645586 https://www.toytowngermany.com/forum/topic/386923-vlh-took-4-months-to-prepare-tax-return-and-200-invoice-my-rights/#comment-3806916   We (my and my wife) lived in canada for first 3 months of the year (had regular salaried income and paid tax already). I found job germany, booked flight together and moved to Germany. I gave canada tax/paid declaration, all other bills and asked VLH to file Germany tax return 4 months back.   He sent me tax return draft this month 1. In draft, he didnt mentioned anything about how much tax I pad in canada already but he did enter, how much I earned in canada+germany and tax paid in germany. 2. He also split flight ticket cost and entered for me only (although its joint file application) and didnt enter any standard meal expense. Also, there was no relocation benefit from company. 3. There was another error on distance calculation which is not relavant here.   I did my research (done multiple tax return in past by myself), used steuergo as a reference and spoke to him about it.   He agreed to correct point 2 and 3. He has now entered full flight ticket cost, standard meal expenses for both person.   For point 1, he told me that germany doesnt consider for tax calculation how much I earned or paid tax for first 3 months because I was not living in germany. But for record purpose, he still need to enter canada earned income and no canada paid tax.   Is this correct? 
  15. Hello,   I recently got a little difficulty to find out how to declare some of my expenses.   I am a full-time freelancer. Sometimes, I hire other freelancers to collaborate on the jobs that I have. How do I declare these expenses? Do I declare them as a normal expense? Or is there a particular section?   I first declared it as an Intra-community service, but I realised now that this is not the right way. Anybody could enlight me on this?   Thank you. Best regards, Arthur
  16. Hallo everyone, I have a question regarding tax declaration. I am working as Wissenschaftliche Mitarbeiter in a University. Apart from my primary job, I am also registered as a PhD student. Whether the cost for my PhD study is considered as Fortbildung or Ausbildung kosten? (I completed my Masters and continuing my PhD in the same area)   
  17. Hello everyone, I will try get right to the point. Last year I had income from subrenting my apartment and I made a tax declaration and paid around 500Euros as tax from the gains. Year 2020 comes and I get a paper to pay money for 2020 (current year) before even making a tax decleration.    1.Why I get charged before the year ends? 2.When I make tax decleration for 2020 I will get the money given back automatically? or I need to report to them that I paid some extra money?   Thanks a lot for your help in advance  
  18. I am investing in mutual funds in my foreign account  in a foreign currency and I need to understand how much taxes I will be paying in germany. I am writing this post after lots of hours of googling and finding very little info about german tax system. Although, I found this thread from PandaMunich which explains very well about new taxation on mutual funds and shares. But there are few things which are still not clear for me:   1 . In that thread, it is assumed that funds are bought on 1.Jan. How the taxes are calculated if the funds are bought during the year? For example , If i buy funds' units every month using Sparplan.   2. What about currency exchange rates ? which exchange rate should i use when I am filling up my german tax forms?   3. I am thinking to use Etoro and copy portfolios which invest in forex and shares. These portfolios do intraday trading thorughout the year. In this case, how I can calculate my taxes?   4 . what are the tax rates for forex trading in germany?
  19. Dear forum members, Tax return filing deadline was Feb 2020 (wihout penalty).    My scenario is: moved to Germany from other country in 2018, Married, regular salaried employee. Provided all documents to them by Oct 2019. And there was no other documents/questions asked by them and I followed-up every months about progress but no reply. Suddenly today I get invoice of 200 euro and tax return which I need to sign and pay invoice before filing.   Also, I am not satisfied tax return file which he prepared. I think, I need second opinion with tax return.   At this point, can I not pay this tax consultant and approach other tax consultant (VLH or other agency) to get second opinion or may be file return with other? Is this ethical?    Thanks.
  20. Hi friends,   I have a peculiar situation (or so I think), and somehow due to overthinking, I have lost the ability to even find the right keywords to my problem (any hints there would also be useful). Here goes,   I have been offered a permanent job in Finland, which I'd like to pursue via remote arrangement (plus at least 1-2 weeks on-site per month). On the other hand, I am a non-EU citizen and have been living in Germany for more than 7 years (7.1 to be precise) - with Niederlassungserlaubnis, and currently in probation of another job. My wish is not to leave Germany, at least before I get my German citizenship, and even if I do, I would like to return in a few years. The key questions which came to my mind are as follows,   - Can I live in Germany on my Niederlassungserlaubnis, and simply have a Finnish contract. I presume Finland would like to tax (plus pension, etc.) the salary at default. How to stop that so that I pay taxes, health, pension over here in Germany (which is a must as I am resident here)? - If I now go to apply for my German citizenship after the probation period of the Finnish job (with valid Finnish job contract), should I foresee any problems there in the context of above? - What other options are there to operationalize the above setting, i.e. living in Germany and work in Finland situation?   ---------------------------------------- Read below, only if you have time ---------------------------------------- Other thoughts in my mind, - Can there be a short term fix for above, e.g. I stay in Germany, work for Finland, for the next 9-12 months, and then anyway have my citizenship, so things are easier? - I cannot change the Niederlassungserlaubnis (DE) to Daueraufenthalt (EU) now since currently, I am on a probation period of another job, plus they would ask me to come back in a few months and apply for citizenship anyway.  - Get a German contract from Finland, and live happily ever after   If you have answers and/or recommendations, it'd be of great help.   Thank you so much!   EDIT: Finnish company does have a wide footprint in Germany as well, and is an EU-wide and international company.
  21. I would like to know what should I (employee) and my employer should do in order to hire me. I will be working remotely but I want to keep staying in Germany for my citizenship purpose. Does anyone know/familiar with the situation? I dunno who should I ask.
  22. Tax advice for new residents from UK

    Hello all,   We are new to the group and I've not been able to find information to help us with our research before moving to Berlin.  We have savings on an investment platform which gives us a monthly income for which we pay UK tax on an annual basis.  We have been advised that as long as we pay UK tax, we will not be charged German tax - is that right? We are planning to move to Berlin and need to know what our tax liabilities will be once we have applied for residency and will be liable to German tax laws.  Any advice or recommended experts would be much appreciated.  Thank you.
  23. Consultants to the ministry of agriculture suggested to introduce a special tax on meat of 40 cent/kg which should be forwarded to farmers in order to allow them to improve the conditions under which animals are kept. Would that work? Would there be enough popular support? I´m a bit sceptical that a tax alone would help. I think they must create more awareness of the problem. Maybe it should be mandatory to depict suffering animals on the package of meat just as there are pictures e. g. of cancerous lungs on cigarette packages. Or texts like: "for the sake of allowing you to buy this Schnitzel 10 cents cheaper the piglet was castrated without anesthesia (and don´t think it´s just a quick cut - they have to squeeze out the testicles as well)".
  24. Donation to City Hall

    Hi everyone,   I want to fill my tax return and I want to declare a donation (painting on canvas - valued 300 euros) made by me to a German City Hall (Verbandsgemeindekasse).   I received a "Bestätigung über Sachzuwendungen" paper from them, stating the value of donation, their address and the mention that is for "Förderung von Kunst und Kultur".   On the respective paper is also checked: x - Die Sachzuwendung stammt nach den Angaben des Zuwendenden aus dem Privatvermögen. x - Die Zuwendung wird - von uns unmittelbar für den angegebenen Zweck verwendet   My question is: In the tax return form, to what kind of institution should I write I made the donation? Political party? Non-Profit organization? etc.   Thank you
  25. Hey folks! I am aware there are some other threads that touch on this subject, but I'm in a bit of a specific situation and would love some input. First off - I don't know much about writing invoices in Germany (or rather anywhere), as I just moved here ~1.5 years ago from the States, so please go easy on me and explain like I'm 5 (ELI5).    So here's the situation. I am currently getting my masters here in Berlin Part-time with a Student Visa, with classes half the year and working part time half the year. I have a primary job that I work under 20 hours a week throughout the year, where I pay taxes. I also have health insurance, and am paying student prices for my monthly fee. My Masters program requires us to work 12 months abroad in a field related to our studies (can be collected in pieces, e.g. 3 months here, 2 months there, 6 months there, etc.) and so I was recently offered a 1.5 month position from a NGO based in Holland where I will be working abroad (SE Asia) the end of last year. I signed the contract without even knowing/understanding that this would qualify as a freelance job, as well as the fact that students in Germany are not allowed to have a freelance job.    Fast forward to after the 1.5 months, the NGO was asking for an Invoice so I can get paid for the job. I've never written an Invoice before, so I googled a template and wrote an Invoice using my SteuerID. (I know, stupid) Within a month or so, they paid me without deducting any taxes (VAT 0%), and I began to realise the potentially horrific situation I am in. (In total in 2019, I made more than the cut-off for not paying taxes, but less than 17000euro)   Of course, I will VERY happily pay taxes, and the last thing I'd like to do is to be on bad terms with the Finanzamt/Ausländerbehörde.   Here are my questions: Now, after doing a bit of internet research, I understand that the Ausländerbehörde can grant people with Student Visas permission to take a freelance job in certain circumstances, so they can apply for a Steurnummer at the Finanzamt. Will they do so even *after* said person has already signed the contract, done the job, and gotten paid for the job? Or perhaps I don't need to tell them this detail yet?   What's my first step? Do I go to the Finanzamt and come clean and see what they suggest? Do I hire a steurberater/in? Do I make an appointment at the Ausländerbehörde to see if they will give me permission for freelance jobs? (If so, what documents do I bring?) How do I fix this? Am I totally doomed?    Also, should I contact the NGO to void my original Invoice, return the money, and wait until I receive a Steuernummer to re-write the Invoice?    Thanks for reading this far. I truly truly appreciate any/all input.