Tax return rental income Loss from renting out US properties
October 2, 2013 | 50,00 EUR | answered by Dr. Yanqiong Bolik
Tax return Rental income / Loss from renting out US real estate:
I have been receiving rental income in the USA since 2012. In 2012 there was a loss of 1500 USD according to the US tax assessment. (total income = adjusted gross income = -1500)
Following questions:
(1) Is Form AUS the correct place? If not, where then (Form(s)/lines)?
(2) If yes, where do the -1500 USD go? Line 31 to 35 or line 44 to 48
(3) If filling out line 31 to 35 or line 44 to 48, do I also need to write the amount in line 36 to 40?
(4) Does the amount need to go into another form and line? Which one?
(5) Can I use oanda.com for currency conversion?
(6) What date or period should I use for the currency conversion?
Thank you!
Dear inquirer,
Thank you for your inquiry, which I am happy to answer taking into account your efforts and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information or the ambiguity of the information can change the tax result. Please be aware that this does not replace individual comprehensive advice.
I assume that the property in the USA is part of your personal assets. Please inform me if this assumption is incorrect. The tax consequences could change.
According to the US/DE Double Taxation Agreement, income from the use of immovable property is taxed based on its location. Therefore, the property located in the USA is taxed in the USA. In Germany, positive income from properties located in the USA is exempt with progression clause (Art. 23 US/DE DTA). Negative income can only be offset with positive income of the same kind and from the same country (§ 2a paragraph 1 EStG).
The tax-free negative income according to the DTA should be entered in Annex AUS line 44 to 48 column 5. The official instructions for Annex AUS explicitly state: "Negative income according to § 2 a paragraph 1 EStG should not be entered here (lines 36 to 40), but in lines 44 to 48." If income is tax-free in the country due to a DTA, it should not be included in the tax return attachments (except for Annexes N and N-AUS). Therefore, the amount should not be entered in other attachments.
You can use the exchange rate from oanda.com on the reference date of 31.12.2012. The tax authorities often use the turnover tax conversion rates published by the Federal Ministry of Finance.
I hope I could be of assistance to you.
If there are still uncertainties, feel free to use the inquiry function.
Best regards
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: steuer@zdbz.de
www.steuerberatung.dr-bolik.de
