Different tax deadline in other coutry

[PETERM]

What is the name of your state (only U.S. law)? FL

Hi,

I have an extension on my US tax return till the 15th of October.

I have some real estate in Germany. There is money on my German account where the rent comes in, but this also includes utilities, advance payments, deposits etc. - so I do not know yet how much the actual profit is.

The tax deadline for 2015 (when the property was bought) is 31. December 2016. I have a CPA in Germany. He explained me, that for various reasons the returns can not be finished before that.

So, what do I do with my US tax return?

Thanks,

Peter

 

[AdjunctFL]

The tax deadline for 2015 (when the property was bought) is 31. December 2016. I have a CPA in Germany. He explained me, that for various reasons the returns can not be finished before that.

I'm not sure exactly what you're waiting for from Germany (whether it's for a real estate property tax deduction or income and expenses from the real estate) but -

--- if it's the real estate tax bill, you don't need it. All you need is the date and amount that was paid during 2015.
--- if it's the income and expenses from the property you need the amount of those income and expenses reported in US dollars. There is no need to file a tax return in Germany first.

If you feel you still need it, you will need to file a return with estimated figures, and then amend it when whatever you need is available.

 

[PETERM]

Thank you for your fast help!


I simply do not know what income and expenses are. I was not aware that they take time till end of the year to calculate everything. There are various companies involved. It is a very big commercial property. Real estate works quite different over there.

If I estimate profits, it will look very good, but of cause they want me to pay taxes in Germany! I am familiar with the foreign tax credit deduction, but nothing was paid yet of cause.

 

[AdjunctFL]

If I estimate profits, it will look very good, but of cause they want me to pay taxes in Germany! I am familiar with the foreign tax credit deduction, but nothing was paid yet of cause.

If the German CPA or the company cannot provide you with the data that you need by the US tax deadline you will have no choice but to estimate income and expenses. The only other alternative, and it's not a good one, is to file without it.

 

[PETERM]

Thank you!

So, in future I should make sure everything is done way before the US tax return.

And I should pay the German taxes, so I can use the foreign tax credit? I assume even i had the numbers now, I could not use the credit, as I have not paid the Germany yet?

 

[FlyingRon]

Actually, you have to the 17th this year. The 15th falls on Saturday.

If you can't file you can't file. What you should do is make sure you don't owe any tax, which will minimize the penalties to be late.