USA stock portfolio
February 23, 2010 | 20,00 EUR | answered by Dr. Dr. Danjel-Philippe Newerla
I have had a stock portfolio at a US bank for 8 months and I trade with a constant amount that stays on the US account... so no transfer back to a German account... I also filled out the W8BEN form when opening the account and therefore do not have a US tax number. What do I need to do to avoid any problems with the tax office?
1. Annually declare my profits and losses from the US account in my tax return, and if so, will they be treated the same as German stock profits/losses?
and/or
2. Can I only declare these profits and losses when I transfer the money back to a German account?
Dear inquirer,
Thank you for your inquiry!
I would like to address your questions as follows, considering the circumstances you have described:
1.) What must/can I do to avoid problems with the tax office?
To avoid any issues with the tax office, you must truthfully and completely report any profits from these investments in your income tax return (Appendix KAP) if they have been earned.
To ensure a proper process in this regard, I strongly recommend that you hire a colleague experienced in tax law or a tax advisor.
2.) Do I have to report my profits and losses from my US account in my tax return annually, and if so, will they be treated the same as German stock profits/losses?
Yes, you must report these profits and can report the losses (profits must be reported, losses can be reported) in your annual tax return. The profits are generally treated the same as stock profits in Germany, with the caveat that any dollar amounts must be converted to euros.
3.) Can I only report these profits and losses once I transfer the money back to a German account?
No, you must report the profits for the year in which they entered your assets. It is irrelevant whether this money ends up in an account abroad or in Germany.
I would like to point out the following:
The legal advice I have provided is based solely on the information you have provided. My response is only an initial legal assessment of the situation and cannot replace a comprehensive evaluation. Adding or omitting relevant information can lead to a completely different legal assessment.
I hope my explanations have been helpful. Feel free to contact me through the follow-up option on this platform or via my email address.
I wish you a pleasant Tuesday afternoon!
Sincerely,
Dipl.-Jur. Danjel-Philippe Newerla, Attorney
Heilsbergerstr. 16
27580 Bremerhaven
kanzlei.newerla@web.de
Tel. 0471/3088132
Fax: 0471/3088316
